If you have just begun to search for your first home, you have probably spent the last few years saving or have just started to save, but where do you start once you’ve saved enough for the deposit? At New Homes Dorset we have created this guide for new buyers who don’t own a property and are looking to buy their dream new build home in Dorset.
Find out how much deposit you will need
Before looking at new build home, you’ll need to calculate how much deposit you will need. There are plenty of useful mortgage calculators online, but for new build homes, the deposit is generally between 15-20% of the cost of the home you’d like. If your new home is registered under the Help to Buy Scheme, your initial deposit could be as little as 5%.
Ensure you can afford the monthly repayments
Before taking on a mortgage for a new build home, the most important thing to determine is whether it’s an affordable choice for you. Take a look at your monthly outgoings and see whether taking on mortgage repayments would mean significantly changing your lifestyle.
Lenders are strict and will check that you can afford the mortgage. This includes stress-testing you to see if you’d still be able to keep up repayments if circumstances changed e.g. if you started a family.
Budget for your first new build home
Once you have taken a look at your financial situation, you will need to also bear in mind the cost of owning a home.
Firstly, you should calculate major upfront costs, such as conveyancing and broker fees. Then consider furniture removal fees and initial furnishing and decorating costs. Understanding these costs can help you to determine the size of the mortgage you can afford to take out.
Benefits of choosing a new build home
There are many benefits of buying a new build home for your first home. Here are just a few of the advantages:
- There’s no moving chain – A huge advantage of new build homes is that there is no moving chain that could slow down your mortgage completion date
- They are energy efficient – With the latest specification of insulation and appliances, new build developments in Dorset generate less CO2 emissions, which could save you hundreds of pounds a year on energy bills
- Many come with warranties – Most new build homes come with an NHBC warranty which protects homebuyers for 10 years. NHBC set the standard for high-quality construction of new build homes and insure over 1.5 million homes across the UK.
Are you a new buyer searching for the perfect new home in Dorset? View our latest listings for new builds in Wimborne, Ferndown, Bournemouth and more! Find the right one for you at New Homes Dorset. Browse our latest new-build listings at New Homes Dorset or get in touch with us today on 01202 878443 or email us firstname.lastname@example.org.