"Advice for life"

First time buyer Mortgage hints and tips

by Matthew Duncan Independent Financial Adviser

Estate Agents.

 

• Do get them to work for you. Tell them what property types you are interested in.
• Do not give them too much information about your finances they are acting for the seller.
• When you have found a property you would like to bid on, phone the estate agent and ask them to pass on your offer (it is that simple). This is not legally binding until exchange of contracts (solicitors). Remember do not bid too high initially or too quickly afterwards if your offer is rejected. Whilst £1000 extra may be cheap to borrow per month it still is a lot of money so you must try to get the best value.

The mortgage process

 

Once you have found a property you like then you need to arrange the finance. Your estate agent may ask you for a decision in principle but it is more common for them to phone

the Mortgage broker/Adviser and ask if there is any reason you would not be able to secure a mortgage.

If you have no adverse credit history, a good income, registered on the electoral role then there is no reason you will not get a mortgage. If you need a decision in principle then call your adviser and they will be able to do this for you.

The rates are changing all the time therefore there is no point in choosing a mortgage product month before you are ready to offer for a property. When you have made an offer or are ready to make an offer this will be the point you sit down with your adviser a go through the different products and options to ensure you get the most suitable mortgage.

Once you have agreed the right deal for you the adviser will apply to the lender and take proof of income and identification (and anything else the lender requires) at this point. The lender will do its relevant checks and once they are happy a mortgage offer will be issued. This is typically valid for up to 6 months depending on the lender. It Is now over to the solicitors
 

Solicitors

 

These are instructed after you have made an offer and it has been accepted. It may be prudent to wait for a mortgage offer but this typically slows down the process and if there is no reason that you cannot get a mortgage you may consider telling them to start the searches. Obviously, if you do not proceed and they have started work you may be liable for their costs.

A date for exchange will be set where you will be required to provide the deposit and then completion will be the point where you get your keys and you are a home owner.

Costs to consider:-

 

• Valuation
• Stamp Duty
• Solicitors

With the right professionals involved, buying your first property should be clear and easy.