First time buyer advice

WelshWonder91

Hi all, I’ve been browsing over the forums for a while and thought this would be the best place to come for some advice. I’ve finally decided to buy my first home but I am unsure of the process of applying for a mortgage and buying a property, would it be better to start a mortgage application first or start viewing properties first? Also any other advice of buying a first home I would gladly accept. Hope I’ve posted this in the right place.

babyblade41

I would firstly find out how much you can lend.. I haven't done a mortgage for many years so not sure of criteria
Then when you know what budget you have then go through right move and choose location, living amenities, and what you want from your first home

I won't allow viewings on my house when I'm selling unless proceed able as it is always difficult for me to arrange viewings at the drop of a hat but then I'm not going to attract many FTB'S (I always live in strange places!!)

Good luck and that first house is the best on completion day

ACG

You can not make an application until you have found a property and a purchase price has been agreed. The address and purchase price are both needed for the application.

You can get a Decision in principle (also known as a DIP/AIP/MIP) but personally I would avoid getting one of these until you have found somewhere if possible. Some estate agents needs them before allowing you to view properties, but they do expire, it can involve a credit check and some will also display how much you can lend - which can be used against you when negotiating the purchase price.

Have a mess about on some affordability calculators to see what you can get. Get a copy of your credit report to see if there are any black markers against your name (defaults/CCJs/arrears etc) - you can get a free copy from noddle.co.uk

FTBuyerGlasgow

Hi, I was in your position 6 years ago (hence my username).

You would want to do a Decision in Principle (DIP or sometimes called an AIP - Approval/Acceptance In Principle).

Most Mortgage lenders can do this for you, you basically tell them your incomings/outgoings, how much you want to borrow etc.

They then tell you if they'll lend you the amount you are after.

This then allows you to look at properties in that price range, make offers etc. Once you make a successful bid on a house you like you then make a Mortgage appointment to secure borrowing against that house. Subject to Valuations, your suitability for lending and so on you then secure your mortgage to buy the house.

WelshWonder91

I’ve done affrordability calculator and it said around £156,000 but I don’t want a mortgage for that amount, I also done an agreement in principle on Barclays website out of curiosity for £90,000 and had an email saying they would be willing to lend me that much.

So essentially when I find a property I like then make a bid on it, then find a mortgage? Would it be better to go through the mortgage process myself or get an advisor/broker (not sure of the difference)

thanks for all the reply’s btw much appreciated.

WelshWonder91

I’ve done affrordability calculator and it said around £156,000 but I don’t want a mortgage for that amount, I also done an agreement in principle on Barclays website out of curiosity for £90,000 and had an email saying they would be willing to lend me that much.

So essentially when I find a property I like then make a bid on it, then find a mortgage? Would it be better to go through the mortgage process myself or get an advisor/broker (not sure of the difference)

00ec25

never ceases to amaze me how, on a housing forum, so many posters do not know the difference between:
- to borrow
and
- to lend

a mortgage is not money you have loaned, it is money you have borrowed.

ACG

WelshWonder91 wrote: »

So essentially when I find a property I like then make a bid on it, then find a mortgage? Would it be better to go through the mortgage process myself or get an advisor/broker (not sure of the difference)

You have the basics of what you need to make an offer.

You can go through your bank or through a broker - it sounds like you are relatively straight forward so should be able to do it yourself.

If you go through a broker, they will ensure you are on a competitive deal (brokers have access to around 70+ lenders), where as if you do it yourself it is just whoever you check with. A broker will also take everything away from you and manage everything on your behalf.

Broker/Advisor - they are usually the same thing. I would describe an advisor as someone who works for the bank/buildng society where as a broker is usually whole of market but thats just the way I tend to describe them.

WelshWonder91

So a broker would deal with all the solicitors, surveys and mortgage application on my behalf but if I didn’t use a broker I would have to do all that myself? Is it hard to deal with solicitors and surveyors?

littlejdxo

Hi @WelshWonder91 :-)

I'm a FTB too and I know there are so many questions you feel like you need to ask and so many 'blank' areas. I will try to help with the below:

You've done the right thing by getting a decision in principle/agreement in principle. Do you have a good deposit saved up ready to go? Once you find somewhere you like, with your AIP/DIP still in date, you are able to make an offer. Once your offer is accepted, you then need to proceed with your mortgage application.

For this part, we're using a mortgage broker to do all of the leg work (London & Country - I would highly recommend them. They will not charge you for their service, they get a commission from any products that you proceed with that they recommend) they take a little bit of the stress away, dealing with all paperwork etc we haven't even had to meet anyone face to face! It's all been done over the phone and through their online portal. We spoke to them whilst we were viewing properties and then again when we found 'the one' and everything has been going smoothly so far.

The estate agents that listed the property we are buying recommended a solicitor/conveyancer that we're using and they're arranging a home buyers survey for us too. You can however do this all by yourself i.e. searching online for local solicitors/surveyors, obtain quotes and instruct them yourself.

My main advice would be to take things slow, try not to get too 'caught up' in it all as no matter how many people you have helping you (brokers etc) it is still one of the most stressful things you will do!

If you have any more questions - fire away and I will try to help

Out,_Vile_Jelly

I downloaded Martin's guide from this website, it was very useful.


Note that brokers only search mortgage deals for you. They don't deal with solicitors or estate agents once the purchasing process starts.