About to buy a house!

housewanted44

Really need some help.

A friend of a friend is desperate to sell their house. We are in a position financially to purchase the house. We are going to view it very soon.

What do we do? Do I need to go and see a lawyer and get it all officially under way? Should I apply for an AIP before viewing?

Really need some help on the process.

Also, we are in a position to make the mortgage length 10 years instead of 25. But when applying will the higher monthly payments be against us? or does it not matter if its affordable?

We are putting 20 percent deposit down.

Help much appreciated!

Thrugelmir

housewanted44 wrote: »

Should I apply for an AIP before viewing?

You may wish to view it before considering your next step.

housewanted44

Yes I have seen pictures but will definitely go to view with other half? Being in my position of 1st time buyer, should I go through a mortgage broker? Will using a mortgage broker be an expensive process? I am trying to figure this into my finances.

ACG

Some brokers dont charge, some take a fee of around 1% and others charge somewhere in between.

With regards to the 10 year term, if a lender wont accept that, they may offer it you over a longer period instead - you then potentially have the option to overpay or save up and pay a lump sum off later down the line.

Usual process is to get an AIP, make a full application, send the info to the lender, get a valuation then let the solicitors and lender to their job. Some lenders will include free legal costs and/or valuations others wont. Its worth having an idea of solicitors you intend to use though.

As for whether you need a broker or not is down to you to decide,its not impossible to do it yourself but if you want a helping hand then it might be worth having.

housewanted44

Thanks for that. I am taking it slowly as I know its such a long complex process that can go wrong anytime.

So in terms of putting an offer in, Can I do this verbally or do I need to do this through a solicitor?

So I am going to get an AIP, then make an offer. Once we are happy to go ahead I will start all the application forms, I understand Nationwide will use a conveyor so this should be fine.

Its very daunting. But hopefully will be ok.

hethmar

If its a friends house, surely you will just make the offer to them (assuming you have had an offer of the mortgage in principle) and if its accepted you and they then instruct your solicitors stating the price agreed. Your mortgage arranger will ask you your solicitors details. If you are going through Nationwide for your mortgage, you wont need a broker.

housewanted44

Thanks for the advice all.

Hethmar, that is fine. Being first time buyers its difficult to know how formal or informal we need to be. Is it just a case of getting AIP, making offer and then contacting a local solictor and advising them I need their service to go through the purchase of a house? Then I make the application with Nationwide............

hethmar

I thought you said Nationwide was going to do the conveyancing though?

If not, yes, you make an offer - its accepted - you and vendor contact your solicitors with details, you contact the mortgagor and complete application form for them to do a survey to see its worth the money and then they make you a formal offer of the mortgage - your solicitor willnthen be dealing with them at the same time and also doing searches etc and communicating with the vendor's solicitor. You will receive paperwork as the conveyance and mortgage progresses.

hethmar

This looks good for you

http://www.nationwide.co.uk/mortgages/calculators/buyingfirsthomeadvice.htm