First time buyer lost with process

helenjones2

Hi everybody,

Looking to get my own house and needing some assistance with first steps.

I'm looking to purchase a property in Scotland at £150,000 and have £31,000 deposit (79% LTV).

HSBC Bank 2-year fixed seems very to have very decent rates,

I viewed 2 properties so far, but feel I am approaching this wrong. I got a Decision in Principle for £133,000, but what do I do if I like a property, can i just make an offer with this DIP in hand?

Houses sell so fast and after looking around these forums, getting mortgage seems to take few months for some.

I started the HSBC online Mortgage application, but is this the right approach?

My question really: How do I get in a position where I can actually make an offer? I see "get mortgage in principle" advice , but cannot see how to get this in the HSBC website.

Thank you

Nebulous2

If you're in Scotland you really need a solicitor before you do anything. Having a DIP is fine, but it doesn't allow you to make a formal offer.

It's worth going with recommendations for solicitors from family or friends and it is also worth getting quotes from different solicitors. It is a competitive market and costs could vary quite a bit. Each lender has a panel of solicitors that they have an agreement with. It is worth checking that any solicitor you intend to use is on the panel for HSBC before agreeing to use them.

If you like a property your solicitor 'notes an interest' to their solicitor. The property then shouldn't be sold without notifying you. The solicitor will make an offer if you have a DIP, but it will be subject to a full application being successful.

There are a range of options for how things happen- with it not always being clear what is going on. If other people have 'noted an interest' then it may go to a closing date, where the best offer wins. Your solicitor may say my client would be prepared to offer £146k. Their solicitor may return with my client wouldn't go for that but will accept £148k. These aren't actual offers - but are negotiating shots.

Your solicitor will then make a formal offer on your behalf.

There will then be a short period of negotiation over fine details of the offer, such as anything to be left in the property and the entry date. Once the offer is accepted and agreed you are legally bound to buy the property, which is why your solicitor will not let you proceed in the process until you have a full offer of a mortgage.

Once the offer is accepted entry and the date the money needs to be available will happen quite quickly, six weeks is common.

helenjones2

Nebulous2 wrote: »

If you're in Scotland you really need a solicitor before you do anything. Having a DIP is fine, but it doesn't allow you to make a formal offer.

It's worth going with recommendations for solicitors from family or friends and it is also worth getting quotes from different solicitors. It is a competitive market and costs could vary quite a bit. Each lender has a panel of solicitors that they have an agreement with. It is worth checking that any solicitor you intend to use is on the panel for HSBC before agreeing to use them.

If you like a property your solicitor 'notes an interest' to their solicitor. The property then shouldn't be sold without notifying you. The solicitor will make an offer if you have a DIP, but it will be subject to a full application being successful.

There are a range of options for how things happen- with it not always being clear what is going on. If other people have 'noted an interest' then it may go to a closing date, where the best offer wins. Your solicitor may say my client would be prepared to offer £146k. Their solicitor may return with my client wouldn't go for that but will accept £148k. These aren't actual offers - but are negotiating shots.

Your solicitor will then make a formal offer on your behalf.

There will then be a short period of negotiation over fine details of the offer, such as anything to be left in the property and the entry date. Once the offer is accepted and agreed you are legally bound to buy the property, which is why your solicitor will not let you proceed in the process until you have a full offer of a mortgage.

Once the offer is accepted entry and the date the money needs to be available will happen quite quickly, six weeks is common.

Thank you for the very helpful response

Also a co-worker recommended I get a solicitor approved by HSBC panel, as you mentioned.

I'll take a look at getting a solicitor and continue looking around.

Thank you

dozzer

Hi ,

I'm in the same position bas yourself, FTB in Scotland. What I did was,

1, get a DIP
2, viewed some places
3, once I seen a place I wanted I went to a local solicitor who was recommended and asked them to place an offer for me telling then proof of my deposit band the DIP
4, they put in an offer and it was accepted
5, went back to mortgage broker and explained Ive had an offer accepted and got a solicitor and bow it's going through nthe mortgage process now.

It's all alien to me also but it seems to be going ok so far.

Good luck

helenjones2

dozzer wrote: »

Hi ,

I'm in the same position bas yourself, FTB in Scotland. What I did was,

1, get a DIP
2, viewed some places
3, once I seen a place I wanted I went to a local solicitor who was recommended and asked them to place an offer for me telling then proof of my deposit band the DIP
4, they put in an offer and it was accepted
5, went back to mortgage broker and explained Ive had an offer accepted and got a solicitor and bow it's going through nthe mortgage process now.

It's all alien to me also but it seems to be going ok so far.

Good luck

Thanks I've new to this process too and wanted to make sure I approach it correctly.

Good luck with you Mortgage