First Time Buyer Worries!

SusieWoozy_2

So I'm sure I'm not the first first time buyer to be worried about the process, but I'd be grateful of some advice/ reassurance!

My partner and I are buying through firstbuy, we've had the eligibility letter and the mortgage promise from the halifax. Our IFA has now submitted the full application, the halifax has taken the valuation fee and we've had to hand over £500 reservation to the developer.

It's all very exciting.. well... trying not to get too excited! Can the halifax turn round and say a big fat no to us even though they have already given us the mortgage promise. We thought it was a good sign that they only wanted to see one of my pay slips and 3 of my partner's when we were expecting much more. The IFA says not to worry at all, they've already said yes but just wanna check we earn what we say we do is this true?

Any comments would be much appreciated! I think i'm doing everyone's heads in worrying!!!

kingstreet

At the point of submitting the full application, your broker will have received a "pass" message which suggests you will be ok.

At this point, the valuation will be carried out and assuming the property structure is ok, the only possible problem is one of lender "saturation" on the site. If, for example, Halifax has taken on more than 30% of the mortgages on the site, they may decline to lend on more. This is a particular problem on shared equity business where there's little competition between lenders and Halifax and Nationwide tend to take on a large percentage of the property on a given site.

Assuming this is ok, you should receive your mortgage offer a few days after the return of the valuation report.

That's it, unless your case is pulled for audit later on, but that should simply mean your broker has to give them more documentation to complete the file.

robrymond

We're in the same boat, waiting for the full offer on FirstBuy and with Halifax, however it seems to be taking ages, the valuation happened two weeks ago now and we had the letter Monday of last week with the valuation.

Getting twitchy waiting around. Taking longer than I thought.

r83_2

And me as well lol. My wife and I are going for shared equity in Persimons home, essex. Applied on 12th Sept. I have been told by Developer that valuation done today at 11am . Had a call from broker at 3.30pm telling me they have the valuation report and we should have further update by EOD if not some point tomorrow !! Does this sound to good to be true? Valaution visit at 11, reports turned into Halifax by 3 and than broker gets update by 3.30 and I "MAY" get decision by tomorrow?? Very interesting !!!
However reading at the comment from Kingstreet (about PASS message) may be broker knew from day one about I have chances of being approved? IHO, I dont think I will get response this faster. I have had a default back in 2006 (satisfied in 2006/7) but have excellent credit history since and same with partner. However, we are an overseas immigrant, so lets see.
Bless FTBs

garth549

Don't worry you should be fine as long as there's nothing serious you haven't disclosed (eg about to be made bankrupt, not been honest about salaries/expenditure etc)

Be aware that Halifax were incredibly slow with my mortgage last month - took nearly 9 weeks from full application to offer. Really stressful but got there in the end!

kingstreet

garth549 wrote: »

Be aware that Halifax were incredibly slow with my mortgage last month - took nearly 9 weeks from full application to offer...

... and my last application to Halifax was keyed on Tuesday and offered on Thursday.

There's no way of estimating how long any application might take.

r83_2

Kingstreet - To your knowledge, would Halifax only ask for valuation once they have verified all other documents and are in position to offer mortgage (providing valuation comes back with no concerns)?

kingstreet wrote: »

... and my last application to Halifax was keyed on Tuesday and offered on Thursday.

There's no way of estimating how long any application might take.

kingstreet

They won't wait to be absolutely certain. If the application passes the credit score, the system automatically debits your card with the valuation fee.

Normally, the application is then checked and any documentation requested. Most brokers know what to expect and do get guidance when the application pass is shown so we fax the documentation at that point.

Unless they see a major issue, the valuation is then normally instructed and carried out quite quickly.

I'd say a broker expecting a problem will ask them to hold the valuation until they are happy with the case.

Once the documentation and valuation are in, a "business decision" is made which decides which cases are offered and which are sent back for further information or declined.

brit1234

SusieWoozy wrote: »

First Time Buyer Worries!

My worries about firstbuy would not be about the mortgage but the troubled scheme itself.

Have you done your research into the First Buy scheme yet?

robrymond

Always someone to turn the thread around. This is about mortgages for FTB, not about shared equity which can be read about in the other forum. If the OP hasn't read into it, then they shouldn't be purchasing a property. We all know the dangers and pitfalls and the positives from this. I know it varies from development to development, but our scheme is pretty good and we're paying the same price as those not on the scheme for the house.

r83_2

:T :T :T Such detailed explanation! Thank you very much. For me, back to agonising wait! I hope things go through smooth.

Thank you once again x

kingstreet wrote: »

They won't wait to be absolutely certain. If the application passes the credit score, the system automatically debits your card with the valuation fee.

Normally, the application is then checked and any documentation requested. Most brokers know what to expect and do get guidance when the application pass is shown so we fax the documentation at that point.

Unless they see a major issue, the valuation is then normally instructed and carried out quite quickly.

I'd say a broker expecting a problem will ask them to hold the valuation until they are happy with the case.

Once the documentation and valuation are in, a "business decision" is made which decides which cases are offered and which are sent back for further information or declined.