FTB in complete confusion

BusyBargainz

Hi all.

I am really hoping I can get some help and advice as a long time lurker, first time poster of this forum.

Myself and my partner are now at the stage where we would like to move out, currently both living with parents.
We have spoken with an independent financial advisor who gave us a figure on what we could borrow and told us to go ahead and start house hunting.

I have been living on Rightmove but I am confused as to what happens next if we see a property we like and book a viewing, if we really like it then do we tell the financial advisor? How does the process work about making an offer? This figure that the financial advisor gave us –where has he got that from? It’s not an official figure is it? I think I am getting ahead of myself here but my mind really is jumbled.

I am basically so confused with the whole situation and I am quite frankly scared to start viewing properties.

Any help would be much appreciated just to shed some light on the situation and give me a rough idea on what we are supposed to be doing next. Thank you.

afooksy

Hey - don't be scared! You can view properties without seeing any kind of advisor or broker - but its a good place to start by seeing someone first to get an idea of how much you could potentially borrow.


If you see a property you like - call the agent and go and see it, its really good to get a feel for houses and what you & partner are looking for. You can see as many houses as you like. You don't have to tell the financial advisor you are viewing properties, but no harm in keeping them informed.


Once you found a house you wanted to buy you would put an offer in. Each situation is so different and really there's no right or wrong - you might offer under the asking price you might offer over - it really varies. Do some research into recent house sales in the area to get a feel for how much houses are selling for.
I went on zoopla and rightmove every day for about 6 months while we saved - it helped me get an idea for how quickly houses were selling in my area and for how much.


The figure given by the financial advisor or mortgage broker is usually based on your credit history, affordability, income etc. Did they discuss this with you at the meeting? I call my mortgage advisor quite a lot- that's kind of what they are there for to help you through the complexities of buying a house.


good luck!

ACG

If you find a property you like in the budget, make an offer.
Let your broker know.
The agent may want a Decision in principle (they may not), if they do your broker will get you one.

Once your offer is accepted your broker will then make an application.

Tell your broker your concerns. Their job is not limited to getting you a mortgage, you are paying for their time and experience. That includes, the mortgage, the house buying process, understanding the time scales etc etc.

squidgychesspiece

Hi Busy,

I've just posted some FTB questions myself!

Our broker gave us a figure too which he had come up with using various lenders 'mortgage affordability calculators' inputting our details - basically what you can do yourself online!

We then had to apply for a 'decision in pinciple' which I *think* is where the lender takes all of your information, income, expenses etc checks your affordability and credit file and says ok, based on what we've seen on we would quite possibly lend you the amount calculated previously (or they say no thanks!)

At this point, after the DiP, we were told to start looking and found a property. Once you've had an offer accepted on a property then my understanding is that you make the full application whereby all of your supporting documents are sent off to the lender to verify the info you gave before - payslips, P60's, bank statements etc. I'm not sure if this bit always happens though - some lenders don't bother to check bank statements for example so I hear.

If that all stacks up I think then it goes to valuation where the lender sends a surveyor out to do a survey of the property you want to buy to check it is worth what you are offering. If they are happy with the survery thats when I think you get your actual mortgage offer.

Sure someone will be along soon to correct me / help more than I can but didn't want to read and run. This is just my limited understanding so far. Hope it helps and good luck!!

BusyBargainz

Thanks for such a fast response.

Yes we did discuss with the financial advisor about affordability he asked us about our wages, current outgoings, credit cards etc. I felt a bit like the figure had appeared from nowhere! He did say we could call him whenever we had any questions but I feel silly asking him these minor things haha.

I think for now if we just head out and start looking at properties then we can take it a step at a time. I am sure it will all become clear as the process goes along!

That’s definitely shed some light on the situation – thank you.

BusyBargainz

Wow – so many responses. Thank you all so much!

I think I will make full use of the advisor – after all that’s what we are paying him for! As far as I know we don’t have a DIP – is this something that we should look into getting?

afooksy

Definitely make full use of them - I ring mine alllll the time he probably hates me. But unfortunately, nobody really tells you how to buy a house!


I have read on these forums some people view houses and then get DIP. For me personally, I think having DIP is a good place to start as you have an idea of how much you can borrow. Its not guaranteed as it is based on the valuation of the property but it also provides some peace of mind that you should be able to borrow that amount.


We saw a mortgage advisor who works for Mann &Co, we had about an hour meeting and he looked at the last 3 months of payslips, bank statements and went through all of our outgoings. He then looked at the different deals online and approached Woolwich who had the most suitable deal for us. Two days later, he gave us the DIP from Woolwich.

ACG

I try to arrange a DIP after the offer has been agreed. The reason being is that what is the best deal today, may not be tomorrow.

The figures the broker has given you are either from lenders affordability calculators or from experience.

Brokers are there to be harassed.

elverson

Read this too if you haven't already.

http://www.moneysavingexpert.com/mortgages/house-buying-guide

BusyBargainz

Thank you. I'll hold off until we actually find somewhere/put an offer in. Could be months away yet - who knows what could happen with the deals.

I am confident he knows what he is talking about. I will definitely harass him in future and get my moneys worth!