FTB - Where to start??

bobbytooshoes

Hi

Me and my OH are hoping to buy our first home in the latter part of next year. We are currently saving every spare penny to ensure that we have a good deposit.

My question is to do with timescales and when and where to start with the buying process??

1. When should we get our AIP?
2. When should we start looking for a property?
3. Anything else we should be considering in the meantime?

Thanks

GMS

bobbytooshoes wrote: »

Hi

Me and my OH are hoping to buy our first home in the latter part of next year. We are currently saving every spare penny to ensure that we have a good deposit.

My question is to do with timescales and when and where to start with the buying process??

1. When should we get our AIP?
2. When should we start looking for a property?
3. Anything else we should be considering in the meantime?

Thanks

How much deposit do you have?
What price property are you looking at?

An AIP is only valid for 30 days with some lenders, so unless you are in a position to proceed to full application within that timescale it may not be worth getting one.

Jackinbox99

You should start looking for a house as soon as you know you can afford it!

Besides the obvious house price, you have to also consider all the costs involved with buying a house. Prices may vary, but having just bought a house, my costs came to £1500 (solicitors fees, mortage fee, searches, land registry, bank transfer charges etc. etc. etc.). On top of that you may have to pay stamp duty - although I believe this is except for FTB`s now?

Id workout what you can afford. Do this by working out what desposit you have, then look at various bank websites and speak to them to give you an idea of how much they will lend you. Then, look at houses. Once you see one you want to make an offer on, you can get an AIP within hours if the estate agent requests it.

Second to all that, id take anything an Estate Agent says with a pinch of salt. Many try to force you to use their own solicitors and their own mortgage advisor. You dont have to at all, so dont sign up for anything until you have thought about it.

bobbytooshoes

GMS wrote: »

How much deposit do you have?
What price property are you looking at?

An AIP is only valid for 30 days with some lenders, so unless you are in a position to proceed to full application within that timescale it may not be worth getting one.

Thanks for your reply.

We are looking at properties in the region of £130k with a 10% deposit. We have combined earnings of £44k and will have no debts by then.

I read somewhere that some EA do not like to arrange viewings for people who don't have an AIP, is this true?

GMS

Estate Agents will try everything to get you to speak to their mortgage advisers.

This should be avoided as much as possible. Speak to a 'Whole of Market' broker and try banks direct if you are confident of criteria.

EA advisers may not be 'Whole of Market'. If you speak to an EA adviser you are disclosing the amount you could borrow to the vendor as the EA acts for them and this may mean you lose some negotiation movement. If the vendor knows you can get the mortgage for asking price they may choose to hold out.

If you have a non EA adviser the figures would be in your head and nobody would know.

If you have an AIP and the EA still wont put in an offer until you see their adviser I personally would knock on the door of the vendor and offer directly.

Good and bad agents, and good and bad brokers. Don't be led by anybody. Do what you want to do.

bobbytooshoes

Jackinbox99 wrote: »

You should start looking for a house as soon as you know you can afford it!

Besides the obvious house price, you have to also consider all the costs involved with buying a house. Prices may vary, but having just bought a house, my costs came to £1500 (solicitors fees, mortage fee, searches, land registry, bank transfer charges etc. etc. etc.). On top of that you may have to pay stamp duty - although I believe this is except for FTB`s now?

Id workout what you can afford. Do this by working out what desposit you have, then look at various bank websites and speak to them to give you an idea of how much they will lend you. Then, look at houses. Once you see one you want to make an offer on, you can get an AIP within hours if the estate agent requests it.

Second to all that, id take anything an Estate Agent says with a pinch of salt. Many try to force you to use their own solicitors and their own mortgage advisor. You dont have to at all, so dont sign up for anything until you have thought about it.

Thanks for your reply - your advice is much appreciated

We have budgeted around £2k for fees on top of the money we will have saved for a deposit. I have also been onto various banking websites to do the affordability checks and repayment calculators and everything seems fine. It is scary just how much some are willing to lend though!!

I guess i'm just been impatient but I would rather ask lots of questions and get lots of great advice from all you good folks on here to avoid going into the whole process with my eyes shut and end up getting stung.

Thanks for the hint on the EA's...i will make sure I have my homework done.

Thanks again

bobbytooshoes

GMS wrote: »

Estate Agents will try everything to get you to speak to their mortgage advisers.

This should be avoided as much as possible. Speak to a 'Whole of Market' broker and try banks direct if you are confident of criteria.

EA advisers may not be 'Whole of Market'. If you speak to an EA adviser you are disclosing the amount you could borrow to the vendor as the EA acts for them and this may mean you lose some negotiation movement. If the vendor knows you can get the mortgage for asking price they may choose to hold out.

If you have a non EA adviser the figures would be in your head and nobody would know.

If you have an AIP and the EA still wont put in an offer until you see their adviser I personally would knock on the door of the vendor and offer directly.

Good and bad agents, and good and bad brokers. Don't be led by anybody. Do what you want to do.

Thanks GMS some really great advice there - I would never have thought about the EA been unwilling to negotiate if they know how much we can borrow!! So will definately avoid using there advisers.