Property Today

It should be a moment of celebration, and a time to overlook the fact you've just borrowed a sum of money so huge it will take you 25 years to pay it off!

But saying goodbye to your last landlord and stepping onto the property ladder can be fraught with problems, as you experience the buying process for the first time.

This weekend on Property Today we're looking at the ten steps you'll take to buy your first home. Tomorrow we focus on picking the property and moving in. But today we start with the steps you'll need to take before you look at a single house.

1) Work out how much you can afford: This is a golden step of home hunting and not one to be ignored. It's vital you take a very close look at your finances to see what room you have for monthly expenses. Missing a repayment is a lot more serious than missing a rental payment – banks aren't known for "waiting till the end of the week" for their money. Look at exactly how much you have coming in each month and your outgoings. Living in your own property can be a lot more expensive than renting; you may be paying council tax and TV licence for the first time. If you have a variable rate mortgage your payments will be at the mercy of interest rate rises, so you will need to be able to pay extra with little notice if required. It's also highly recommended you keep some money aside each month for emergencies... if the boiler blows up in your property, it's your problem.

2) Get a deposit together: With the mortgage market the way it is at the moment, the bigger the deposit you can pull together, the better mortgage deal you will find. You are going to need at least five per cent of the purchase price; ideally more. Many first-time buyers borrow this from family and repay it when equity is released in a future house sale.

3) Get a mortgage agreed in principle: You won't be taken seriously as a buyer – especially a first-time buyer – without a mortgage offer. So get your sums worked out and approach lenders. Mortgage brokers will be able to look at products from more than one company, and online comparison sites will look at virtually everything available. You might find your bank is more likely to lend you money as they have an existing relationship with you.

4) Find a solicitor: To buy a house you need legal representation. This is called conveyancing, and you can either hire a solicitor, or a licensed conveyancer. They tend to be cheaper and focus entirely on property transactions.

5) Get hunting for a home: Done those steps? Then get yourself out there and look for your perfect home. The first place to look is property portals such as Property Today. Then register your interest with local estate agents. Be prepared to give them a brief on your budget and the kind of property you are looking for. Good agents will give you a reality check and free advice to find the right home. Local newspapers are also the perfect way to browse everything on the market right now.