Help! Confused 1st time buyer!

Alex121

Hi,

I've decided that the time has come for me to buy my own property. I've been saving & I now think that I should have enough for a deposit, fees & other costs associated with moving.

Ive been reading various guides on the moving process but I'm feeling a bit confused by it all & wondered of someone can clarify what i need to do next?!

Should I try to see a mortgage broker or independant financial adviser to get an idea of how much I'd be able to borrow? What's the difference between an IFA & a mortgage broker?!!

Cannon_Fodder

Check your credit history.

Read the credit rating article in the main site; http://www.moneysavingexpert.com/loans/credit-rating-credit-score

It takes time for improvements to filter through, so you need to do this some time before trying to buy a house.

Alex121

Thanks Cannon Fodder. I've just checked it on Experian & my credit report is all fine. I don't have any debt & pay off my credit cards in full each month.

Cannon_Fodder

You need to check all 3...

Evilm

Alex121 wrote: »

Hi,

I've decided that the time has come for me to buy my own property. I've been saving & I now think that I should have enough for a deposit, fees & other costs associated with moving.

Ive been reading various guides on the moving process but I'm feeling a bit confused by it all & wondered of someone can clarify what i need to do next?!

Should I try to see a mortgage broker or independant financial adviser to get an idea of how much I'd be able to borrow? What's the difference between an IFA & a mortgage broker?!!

Not much difference between the two except the IFA has their own business and premises and do more than just mortgages. The mortgage broker usually works from the estate agents office.

Both usually have access to the whole market but if you don't feel ok with them and think you are getting a good deal then visit another one too to see if they can give you other deals that the first isn't mentioning.

I would talk to a mortgage broker first and get an idea of what they could lend you and how much it would cost per month and overall.

Then work out how much of a mortgage you could actually afford to pay (and don't bank on changing your spending habits as you wont - as a rule if you can't afford it month to month now as a replacement to your rent then you won't be able to keep it up in the future on your current salary).

Take that figure and the deposit you have saved, minus the usual fees and work out what your top buying price would be and start looking under/at that figure. Do leave yourself a rainy day fund if possible to leave yourself some leeway for emergencies if you can.

As for the moving process your solicitor will be able to advise as the process goes along but it is good that you are already trying to get information about it.

good luck!