FTB in really simple terms please!!! Im confused!

cankle

Hi All, I'm new to these forums and in the process of buying my first home. The stage I'm at at the moment is, Ive had an offer accepted on a property, I have a mortgage in principal, Ive got a solicitor lined up and done the relevant identification checks with them, Ive had notification of sale from sellers EA so erm what happens next???? I have been reading loads of guides tips etc and some are saying arrange a survey, isnt this what my lender will do? When should I receive my mortgage application, I really just want some reassurance as not sure I would be able to cope if I lost this house I have been searching for so long for the perfect tick all boxes and this one does!!! Its making me feel sick the thought of losing it!! _pale_

Yorkie1

Two separate things start happening now.

Firstly, your solicitor will start the legal stuff including searches, liaison with the seller's solicitor etc.

In the meantime, you apply for your mortgage properly (assuming not yet done). The mortgage company will get its own valuation done (for which you pay). This is not a survey for your purposes. You have three choices: a) don't get a survey done [not recommended unless you know what to look for on your own or have someone who does for you]; b) pay a bit extra to the surveyor who the mortgage company use, to do a survey for you too [this is what most people do, you decide which type of survey at the time of mortgage application and pay your fee]; c) pay for your own independent surveyor who you select and instruct separately.

Once the lender's valuation is done, and your credit checks have been completed, the mortgage company will decide whether to issue you with the formal mortgage offer at the price you applied for, or for less, or for the whole amount less some money retained if there are works needed to be done to the property first (not that common). If the mortgage valuation is less than you have agreed for the property, you may need to renegotiate the price - but don't worry about that, come back here and ask if / when you reach that stage.

cankle

Thank you for your reply!! its all very daunting and I feel like I'm a fool fumbling around in the dark!! I think my broker has applied for my mortgage properly so should I be expecting another bill shortly!! lol is it this point they will tell me about the survey? When (hopefully!) I get the formal mortgage offer will it be my broker, lender or me that sends it to the sellers solicitors? At what point can I start packing and when should I give notice (four weeks) on my shoebox of a flat that Im in, is really what I want to know!!! Sorry for all the questions, never in my life have I felt sick and excited in equal amounts at the same time!!!

Yorkie1

cankle wrote: »

Thank you for your reply!! its all very daunting and I feel like I'm a fool fumbling around in the dark!! I think my broker has applied for my mortgage properly so should I be expecting another bill shortly!! lol is it this point they will tell me about the survey?

Usually when you apply for the mortgage, I think you can indicate at that point whether you want the surveyor to do a survey for you as well as the valuation for the lender. Check with your broker on Monday.

When (hopefully!) I get the formal mortgage offer will it be my broker, lender or me that sends it to the sellers solicitors?

The offer will go to you, your broker and your solicitor (because they act for the lender as well as for you - don't worry about this, this is standard).

Your solicitor will check all is in order. The offer doesn't get sent to the seller's solicitors.

At what point can I start packing and when should I give notice (four weeks) on my shoebox of a flat that Im in, is really what I want to know!!!

Do not give notice until you have exchanged contracts. This is the point at which you and the seller are legally committed to the contract. Make sure your solicitor knows you are in rented accommodation and try to time the dates of exchange and then completion (i.e. when the sale finally goes through) so that you don't have too much overlap between paying the end of your notice period and start paying the mortgage.

Sorry for all the questions, never in my life have I felt sick and excited in equal amounts at the same time!!!

I remember how that feels

cankle

I'm so worried that I wont get a mortgage offer!! I dont have any outstanding loans, no credit cards or HP's Ive always been in full time employment and have lived at my current address since 2005 and paid rent on time every month!! All I can think of money wise that could go against me is I have used my overdraft facility quite often in fact Ive been overdrawn for quite some time (all within the agreed limit I hasten to add!) I have now paid it off (a couple of days ago) so Im back well within the black but could this still go against me???

Jeffrey_Shaw

Really, all these questions of yours are best answered by your own solicitor.
You pay him/her for detailed professional; advice; and only he/she knows your precise legal position; we don't!

cankle

No I appreciate that you dont know my legal position but I am not asking you to tell me my legal position am I!!! Im asking for advice in buying a house!!! which knock me down with a feather is what I thought these forums were about!!! I would like to thank Yorkie for the advice he has given so far! Really if you (Jeffrey Shaw) dont have any advice why bother posting???? I know everyones circumstances are different and I appreciate that but I am just asking what people think, trying to draw on other peoples experiences and trying to get a bit of reassurance!!!!

charleyroo

Hi OP, have a search on these forums for 'house buying proces' and indeed on Google.

I found the wealth of information that is already here to be a great distractor (is that a word?) and reassuring, in the weeks and months that will follow as your purchase progresses.

I would also ask your mortgage advisor for hints and tips. Mine was better than the EA, lender or solicitor when it came to answering silly questions and reassuring me after I'd send frantic emails over the weekend, worrying about the mortgage or how slow everything seemed to be going.

Yorkie1

To be fair to Jeffrey, he provides an awful lot of support to many many people on this board, if you look at all the other posts which he has answered. Your solicitor is indeed the best person to provide specific advice to you, and some of the things you were asking about can easily be outside the knowledge of strangers on an internet forum - our posts can only be general. We cannot provide specific answers to questions about mortgage eligibility or particular quirks to your particular process. I do think your reply to Jeffrey was rather harsh.

WillF_2

Yorkie1 wrote: »

To be fair to Jeffrey, he provides an awful lot of support to many many people on this board, if you look at all the other posts which he has answered. Your solicitor is indeed the best person to provide specific advice to you, and some of the things you were asking about can easily be outside the knowledge of strangers on an internet forum - our posts can only be general. We cannot provide specific answers to questions about mortgage eligibility or particular quirks to your particular process. I do think your reply to Jeffrey was rather harsh.

Maybe OP was frustrated by his persistent and incorrect use of semi-colons.

AFK_Matrix

I too am buying my first property and I feel for you as it is one daunting prospect!!! I also have had an offer accepted so I am going to be doing the solicitor hunt this week and I will be getting an independent surveyor to do my property as the EA surveyor will only be interested I believe in if the property is of a decent level to cover the mortgage you are taking out not the whole price of the property. But I am no expert so might be wrong there.

Also as for when you give notice on your flat I would give notice on the actual day you step foot in your new house. I say this as things can go tits up as it were right up until the last moment and if you have given notice then you have no where to fall back on if the worst happens. That's what I am doing and I know its an extra months rent but I think its worth it for the peace of mind.