First time buyer HELP!

shazchip

Hi all,

I'd like to ask some advice. I'm a first time buyer.. I'm totally new to knowing anything about buying and mortgages etc etc, I literally have just today been reading up on the different types of mortgages. So, sorry if what I am about to ask seems very obvious or basic to most of you

What I have done so far :

- Found a property I am very interested in.
- Contacted the estate agent to arrange a viewing.

..in the meantime..

- Determined how much I can raise for a deposit.
- Searched online (used money supermarket comparison) to see what sort of monthly mortgage payments I would be looking at.
- Decided (after weighing up outgoings for utilities etc) that yes, I can afford it all.

..then..

- Gone back to the online comparison to see which provider was the cheapest (turns out to be HSBC at the moment - so I think I should make an appointment with HSBC ??)
- Started googling and reading forums on MSE for more information...


Here is the point at which I get confused. I'm reading all about needing a solicitor / broker etc... Do I HAVE to have a solicitor? What is the purpose of each additional person I need in this transaction? Obviously the estate agent is the liaison between me and the property owner .. beyond this I'm a bit lost as to what my next steps (as far as the finances go, anyway) should be ...

Help! Any idiots-guide style information much appreciated!



P.S. Sorry if this has been covered elsewhere, I read as much as I could of other house-buyinf / first time mortgage forums, but couldn't find anyone asking anything similar ...

louisa_84

I was very lucky in that fil sorted out our house purchase for us lol, however i will say, all of our mortgage was done over the phone, no need to make apps and go into a branch at all. Made life so much easier! Ours is with Santander

picklepick

Hi Shazchip

First off, I know you say you've found a suitable mortgage but my advice to you would be to speak to a'whole of market' broker first. This means that they will search the market to find you the best deal and the lender that best suits your personal situation. Note that when I say 'whole of market' not all mortgages are available to brokers but they will search the ones which are. Martin has an article on this here: http://www.moneysavingexpert.com/mortgages/best-mortgages-cashback
I used London and Country to find my mortgage, they charge you nothing. They also complete all the application paperwork for you, it makes the whole process much easier. I had an agreement in principle from HSBC which was sadly declined at the next application stage so I went to L&C and in the end they found me a better deal anyway!

Once you have found a suitable mortgage you should obtain an 'Agreement In Principle'. This is basically a piece of paper from the lender, confirming what they are prepared to lend you. It will have a time limit on it and it's what it says it is, agreement 'in principle'. It isn't a formal offer of a mortgage. This comes later.

The next thing to do is to get quotes for the conveyancing (legal) process. For that you will need to google local property/conveyancing solicitors near to you. Most people recommend using a local solicitor as you can go and see them in person. Try and get a recommendation from a friend or search the internet for reviews.

As well as these costs, you may also need to pay a mortgage arrangement fee (often they can be added to your mortgage repayments), a mortgage valuation fee (so the lender knows that they are making a good investment), and a homebuyers or structural survery (price varies across the country and by size of property). Account for the price of furniture removals, if you have any and the cost of buying new/second hand white goods.

Now comes the fun part... Once you have found a house you like you make your offer. Make sure any written offer is highlighted as 'subject to contract'. If it's accepted, the estate agent will often want to see proof of your financial position, this is where your agreement in principle comes in! Then you instruct your solicitor, you start your full mortgage application with your lender, you find and instruct your surveyor and you start to get excited!

I hope that's helped!

Okydoky25

You don't need a solicitor until you have had an offer accepted on a property. You will then use them to complete the paperwork, do searches etc to complete on the sale. Not something you can do yourself. If you chose to go ahead with HSBC as your mortgage provider you don't need a broker. Ignore the estate agent who will no doubt say you need to meet with their in house broker. If you have your mortgage in principle politely deline this offer.

Okydoky25

Agree with above re searching out best mortgage deal. We have Lao chosen HSBC however and after having a meeting with a broker he couldn't beat it! However I stress this was for our particular needs and will change with yours.

shazchip

Thanks all who have replied so far, especially picklepick for the pointers to other guides - I am now much more well informed and things make some sense now!! :)

Didn't realise there were so many other fees involved in buying a house :-(

I assume I can change the amount slightly from my Agreement in Principle to the actual mortgage (i.e. originally think I need £95k but then offer for £85k is accepted) ... so the Agreement is just to show that you are 'worthy' of a mortgage .. but then later on you could (in theory) go to a whole new set of brokers etc to find a better deal for the lower actual price of accepted offer??

picklepick

shazchip wrote: »

I assume I can change the amount slightly from my Agreement in Principle to the actual mortgage (i.e. originally think I need £95k but then offer for £85k is accepted) ... so the Agreement is just to show that you are 'worthy' of a mortgage .. but then later on you could (in theory) go to a whole new set of brokers etc to find a better deal for the lower actual price of accepted offer??

Oh yes the AIP will say that they will be willing to lend in principle up to a certain amount, you can most definitely apply for less!