A Guide to First Time Buyers Mortgages
When embarking on the journey of buying your first home/property can be exciting as well as a tad nerve-wracking.
There are many things to consider when taking your first step onto the property ladder.
So today we will be talking about what you need to consider and look out for so you are ready and feel confident to start this journey.
For first time buyers it’s easy to wonder where do I start?
Your Just Mortgages Adviser is there to help by giving you the proper advice and guidance. It’s important to be in the best position for when you’ve found your desired property.
When you have your first meeting with your Mortgage Adviser, they will review your income and outgoings to determine so that a realistic budget is set so that your property search is more straightforward and no time is wasted.
The documents needed are:
- Bank Statements
- Payslips or audited accounts (SA302 documents if self employed
- Proof of residency
- any existing loans or credit card commitments
- Proof of identity (such as driving licence or passport)
- Proof of deposit
Your mortgage adviser states how much you can borrow and any monthly costs. as well as this, they will assist you in what costs go into purchasing a property. Such as:
- Lender charges
- Solicitors fees
- Your deposit
- Surveys fees
- Stamp duty/government taxes
- Protection costs for your mortgage, yourself and your property
Getting the right service
Something else that might be on your mind is who exactly do I need to manage all the aspects of buying a house?
A solicitor will carry out the process of handing over the property from one individual to another, this is called conveyancing.
How do I get a solicitor? Your mortgage adviser has you covered as they can put in touch with solicitor that is dedicated to you.
They also have your back with any legal requirements surrounding the property.
Spicerhaart Legal Panel of solicitors charge a fixed fee based on the agreed sale price on a No Move No Fee basis. This allows you to be worry free if any last minute hiccups occur.
The start of the property search
After you have discussed the options, an application for a decision in principle will be put in by your Mortgage Adviser.
Next, the mortgage lender will carry out a credit search and offer a decision in principle based on the details provided to them. this is subject to a full application for the lender with all supporting and relevant documents.
Then, once a property has been chosen, the lender will want to carry out a survey on the property to make sure it is suitable and secure for the mortgage. During this process your Mortgage Adviser and Lender will cooperate so any stress regarding this will be lifted off your shoulders.
When it comes to making an offer, it’s important to remember that the asking price isn’t the set price.
Many home buyers offer lower than the asking price but this is considering the popularity of the property. if there are a lot of bidders, it’s probably best to submit an offer closer to the asking price to make sure you’re in the running.
As a first time buyer, you hold an advantage compared to other buyers as you are not dependent on a house sale making the process simpler for all parties involved.
If your offer is accepted it will be confirmed in writing. However, the property is not yours yet, officially. all legally binding contracts must be exchanged and all monies are paid. Again, your Mortgage Adviser will help you make a formal offer and liaise with your solicitor.
Making sure you know what state the property is in before you buy is important. At first glance, the property could have many issues that could taint the moving experience, especially if this is your first.
Surveys vary from valuation surveys to structural surveys.
Applying for your mortgage
An application will be submitted by your Mortgage Adviser to the mortgage lender with all the relevant information (what solicitor you will be using, details of the property you want to purchase and any supporting documentation).
The length of the property search could affect your mortgage recommendation, your Mortgage Adviser will do this for and make sure it’s still right for you.
A review of your application by the lender will be conducted and checks that are necessary will be done to coincide with the lending criteria.
After a basic mortgage valuation you, your solicitor and your Mortgage Adviser will receive a copy of the mortgage offer.
After all of the searches have been carried out by your solicitor, solicitors from both parties will create formal contracts for you and the seller to sign.
Your deposit funds will be asked for by your solicitor in order to exchange.
Ensure that building insurance is put in place, this will be discussed with your Mortgage Adviser in the beginning appointments prior to this stage.
Make sure that everything is prepared as the contracts are legally binding.
It’s time to move in!
Congratulations, today is moving day, also known as completion.
Funds released by the lender will be transferred by your solicitor to the seller’s solicitor, from this you get the keys to your new home!
The first mortgage payment will leave your account usually a month after moving in. this may be more than your regular monthly repayment depending on when you complete and your payment date. Again, this is something your Mortgage Adviser will give you more information on.
As well, the estate agents, Just Mortgages Adviser and Solicitor will ensure this is as smooth as possible.