Visit the bank first? Or find the house first?

Curls2208

So I will be searching soon to buy. I've read the MSE guide but I'm still unsure of where to even begin.

Should I be visiting a bank/mortgage broker, to figure out how much they'll lend me? Or should I be turning up with a house in mind and an exact amount i need to lend ready, maybe even an offer already made for the house?? Ideally I'll be buying for 120,000-150,000 with a deposit of 30 K. I honestly don't know WHERE to begin!

Sorry If there is already a thread...or hundreds of threads for this. I couldn't find the right info.

glider3560

Get a "decision in principle" or "agreement in principle" from a lender before you start viewing, then it will be much more likely that sellers will accept your offer. You don't have to get the mortgage from that company, but it will help with your offer. Many places (including Halifax and Nationwide) will give you one online instantly. Alternatively, you could visit/telephone a broker.

It also gives you a chance to shop around, rather than taking the first place that can give you an appointment after your offer is accepted.

ScorpiondeRooftrouser

It's pointless looking for a house unless you know you can raise the finances. That said, unless there is anything complicated about your situation you can find that out online.

For what you are looking at then if your salary is around £35K or over and you have no outstanding debts etc, you would probably be fine.

badger09

Curls2208 wrote: »

So I will be searching soon to buy. I've read the MSE guide but I'm still unsure of where to even begin.

Should I be visiting a bank/mortgage broker, to figure out how much they'll lend me? Or should I be turning up with a house in mind and an exact amount i need to lend ready, maybe even an offer already made for the house?? Ideally I'll be buying for 120,000-150,000 with a deposit of 30 K. I honestly don't know WHERE to begin!

Sorry If there is already a thread...or hundreds of threads for this. I couldn't find the right info.

It would make sense to me to start with a clearer idea of what you can afford to buy. So find out what prospective mortgage providers are prepared to lend you.

Then start looking.

If you 'think' you can afford to pay £150k, and find somewhere around that price that you really like, but actually can afford only £120k, then you are going to be very disappointed.

ceb1995

Definitely go to the bank first so you can realistically view places within your price range.

Curls2208

Thank you all. I will start looking online at what quotes I can get. I am eagerly waiting my february pay check to see how much more I can raise over the next 4 months before i get back home and start searching!

badger09

Curls2208 wrote: »

Thank you all. I will start looking online at what quotes I can get. I am eagerly waiting my february pay check to see how much more I can raise over the next 4 months before i get back home and start searching!

The house/flat buying process is stressful enough without looking at places you can't afford. Hope you get the news you want.

Good luck!

kingstreet

Curls2208 wrote: »

Thank you all. I will start looking online at what quotes I can get. I am eagerly waiting my february pay check to see how much more I can raise over the next 4 months before i get back home and start searching!

Is there something special about your February payslip?

If you need variable earnings taken into account, such as overtime, bonus or commission, the average from the latest three months payslips is most likely to be taken.

Callie22

We went to see a mortgage broker first as it didn't seem sensible to do it the other way, despite the bank advisor telling us to 'go away and find your dream home and then we'll tell you how much you can borrow'. I strongly suspected that my 'dream home' and my 'realistic budget' differed wildly, and I was right

00ec25

when you go into Tesco to buy food do you get to the checkout and then find out your credit card limit has been reached and there is not enough cash in your wallet to pay for what is in your trolley?

Or do you see how much you can afford to spend that week, and only buy what you can pay for?

life can be so complicated

Curls2208

Yeap my payslip changes every month.

In the past year I have been temporarily promoted whilst working abroad for 6 months, then gone back to the UK and gone back to lower pay for 3 months.

Now I'm abroad again, have not been promoted, but my generic normal position has had a pay rise backdated 3 years due to freezes and internal disputes. I am also working about 72 hour weeks for the next 3 months and claiming all overtime. My payslips are gonna look ski-whif....however I'm recording it all.

It'll probably be best if I go into the bank with my book of payslips for the year to show them what the hell is going on!

Had a quick look on hsbc with some info and they offered me £135,000. Not too shabby.