I Wish Someone Had Told Me This Before I Bought My First House

By HOAR Team 16 April, 2025 7 mins read 380 Views

God. Buying your first home feels like trying to solve a Rubik's cube blindfolded while someone shouts confusing directions in your ear. I've seen it all working as a mortgage advisor - the panic, the confusion, the "why didn't anyone tell me this before?!" moments.

Last month, I sat across from a couple who'd been saving for 7 years for their dream home. They looked at me like I was about to perform some kind of financial miracle. The truth? Most of what I told them wasn't rocket science - just stuff nobody bothers explaining to first-timers.

Audio Summary of the Article

The Early Bird Doesn't Just Get the Worm... They Get the Keys

Listen. If there's one thing I've learned in my 10+ years as a mortgage advisor, it's that there's literally no such thing as preparing too early. None. Zero. I had a client last year who started organizing her finances 18 months before house hunting, and even she wished she'd started sooner.

Banks will typically ask for three months of statements when you apply. But here's what they don't tell you: one bounced gym membership payment can torpedo your entire application.

I had a client back in 2018 who was earning £65K a year, had a spotless credit history, and got rejected because his phone bill bounced twice in the previous quarter. The bank didn't care that he paid it two days later. Their exact words: "Indicates poor money management." Poor guy was devastated.

That Thing Nobody Tells You About Your Bills

Check where your bills are registered. Seriously.

I cannot tell you how many times I've seen perfectly qualified buyers get rejected because their Netflix account was still registered to their university address from 4 years ago. It's maddening! One of my clients (smart woman, works in finance herself) had her car insurance registered to her parents' house, her mobile phone to her old flat, and her credit card to her current address.

The bank's response: "Inconsistent residency information." Application denied.

Brokers: Worth Every Penny or Complete Waste?

I'm biased (obviously), but a good broker is worth their weight in gold. My colleague bet me £20 that I couldn't save a client more than our fee last month. I found them a deal that saved them £4,200 over two years. My fee was £450.

Not all brokers are created equal though. Some are tied to specific lenders and will only show you a tiny slice of what's available. Others (like me) are "whole of market" and can access pretty much everything.

And here's a little insider secret - if your bank's rate drops between application and completion, you can usually switch to teh lower rate. Nine times out of ten, they'll let you. Most people never even ask!

First-Time Buyers Have More Power Than They Think

You know what makes sellers weak at the knees? A chain-free buyer. That's you!

I feel stupid now, but when I bought my first place, I went in at asking price because I was scared of losing it. The estate agent literally couldn't believe it. I later found out the sellers would've accepted £15K less because I was a first-time buyer with no chain.

Hold your nerve. Estate agents will tell you there are 10 other viewings scheduled. They'll hint at higher offers. They'll create urgency. It's literally their job to get the highest price possible.

The Golden Rule (Break This and I'll Hunt You Down)

Never. Ever. Go above asking price.

I had clients who fell in love with a house listed at £300K. They offered £315K to "make sure they got it." The bank valued it at... you guessed it... £300K. They had to scramble to find an extra £15K in cash that they didn't have.

What's worse, they immediately lost that £15K in equity. They basically set fire to fifteen thousand pounds because they got emotional.

Those "Helpful" Government Schemes... Aren't Always

I've seen some real horror stories with Shared Ownership. One client from 2020 bought a 25% share of a new build flat. Three years later, she wanted to sell, only to discover the housing association was valuing it at less than she paid. She couldn't even cover her mortgage.

That said, some bank schemes are genuinely helpful. Skipton's zero-deposit mortgage is a godsend if you can qualify. You need 12 months' rental history and to be over 21, but it's opened doors for people who'd otherwise be renting for another decade.

The Mistake That'll Cost You More Than Money

I'm going to sound like your mother here, but... please don't buy property with someone unless your relationship is rock solid.

It is literally easier to get divorced than to get out of a joint mortgage. I'm not exaggerating.

Just last week, I met with a couple who bought together 8 months ago. They've now split up, neither can afford the mortgage alone, and they're facing a £9K early repayment charge plus all the selling costs. They put down £20K on a £200K house and are going to walk away with almost nothing.

Be solid on your relationship before you sign those papers. No house is worth that kind of financial and emotional pain.

Buying your first home should be exciting, not terrifying. And with a bit of insider knowledge, it can be. Just... maybe don't tell the estate agent I told you all this. They already hate me enough.

Frequently Asked Questions

What is the importance of financial literacy?

Financial literacy is essential for making informed decisions about budgeting, saving, investing, and managing debt. It empowers individuals to understand financial concepts, evaluate risks, and navigate complex financial products, leading to better financial stability and long-term wealth building.

What is the difference between saving and investing?

Saving typically involves setting aside money in a secure account for short-term needs or emergencies, while investing involves using money to purchase assets like stocks or real estate with the expectation of generating a return over the long term. Investing carries higher risks but offers the potential for greater rewards.

What is the definition of money?

Money is a medium of exchange that facilitates transactions for goods and services. It serves as a unit of account, a store of value, and a standard of deferred payment, allowing individuals to compare the value of diverse products and services.

How can I start saving for retirement?

To start saving for retirement, begin by establishing clear retirement goals and determining how much you need to save. Contribute to employer-sponsored retirement plans, such as a 401(k), and consider opening an Individual Retirement Account (IRA). Regular contributions and taking advantage of compounding interest can significantly boost your retirement savings over time.

What are the risks associated with investing in the stock market?

Investing in the stock market involves several risks, including market volatility, economic downturns, and company-specific factors that can lead to losses. Investors may also face liquidity risk, where they cannot sell an investment quickly without incurring a loss. Diversification and thorough research can help mitigate these risks.

What are credit scores and why are they important?

Credit scores are numerical representations of an individual's creditworthiness, calculated based on credit history, payment behavior, and debt levels. They are important because they impact the ability to obtain loans, credit cards, and favorable interest rates, affecting overall financial health.

How does inflation affect the value of money?

Inflation refers to the general rise in prices over time, which erodes the purchasing power of money. As inflation increases, each unit of currency buys fewer goods and services, meaning that the value of money decreases in terms of what it can purchase.

Statistics

A study by the National Endowment for Financial Education found that 60% of Americans do not have a budget.
According to the Bureau of Labor Statistics, the average American spends about $1,500 per year on coffee.
A survey by the American Psychological Association found that 72% of Americans reported feeling stressed about money at some point in the past month.
According to the Federal Reserve, approximately 39% of Americans do not have enough savings to cover a $400 emergency expense.
As of 2021, the average student loan debt for recent graduates was approximately $30,000, according to the Federal Reserve.
According to a survey by the Financial Industry Regulatory Authority (FINRA), about 66% of Americans could not correctly answer four basic financial literacy questions.
As of 2021, the median household income in the U.S. was approximately $67,521, according to the U.S. Census Bureau.
According to a Gallup poll, 56% of Americans report that their financial situation is better than it was a year ago.

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How To

How To Educate Yourself About Personal Finance

Educating yourself about personal finance is a vital step toward financial independence. Start by reading books and reputable blogs that cover fundamental concepts like budgeting, saving, investing, and credit management. Consider enrolling in free online courses or attending local workshops on financial literacy. Follow financial experts on social media for tips and current trends. Additionally, podcasts and webinars offer valuable insights and diverse perspectives. Join forums or community groups to discuss financial topics with others. Lastly, practice what you learn by applying concepts to your own financial situation for hands-on experience.