First Time Buyer Mortgage offer

SalarySlave

Hi Guys

I hope you can help. When should I speak to a mortgage broker. I am currently searching for a house, and hope to buy something this year.I have read that you should have some sort of mortgage offer in principal, before going through the full application.

I have not yet found the house I want yet, so I am not sure about how much I should seek in a mortgage application.

I have a large deposit saved(85k) and will be looking at houses valued between 200k and 300k. I only want to pay 10% deposit upfront though as I was to buy furniture, car, wedding once I have bought the house.

Should I wait til I find a house before speaking to a broker so I know exactly how much I want or should I ask the broker to find out the maximum.

Also when do brokers get paid? Do I pay them at the start or do they get paid once the house purchase is complete? Is it ok to get an offer from them and then try to beat this offer yourself?

Thanks in advance.

jbondo

Hi,

I would advise talking to a broker now. Even if you do not talk to a broker, you should atleast get a Decision In Principle.

Talking to a broker now and/or getting a DIP will give you an idea on how much you would be able to borrow. You will also get a certificate with this too.

When you make an offer on a property, you'll probably be asked to provide your decision in principle to the estate agent, so that they know your serious & have a decent chance at getting a mortgage etc.

I don't know exactly when brokers get paid as we are currently using L&C who are free but get commission from lenders.

letitbe90

Get a decision in principle from a broker (eg L&C). When you make an offer to a house, they’d want to see proof of deposit and a DIP before accepting your offer .

pip10

Also when do brokers get paid? Do I pay them at the start or do they get paid once the house purchase is complete? Is it ok to get an offer from them and then try to beat this offer yourself?

Thanks in advance.[/QUOTE]

The broker we are using is around a £100 fee from us when everything completes and commission from the mortgage company we've chosen, which in our case is going to be around £500-£600. Nothing up front. They also make commission from life insurance and building/contents insurance should you wish to go with their recommendations, however I managed to find better deals myself searching online.

Like people say above book an appointment and get an aip. Ask friends for a recommendation.

[Deleted User]

And please remember, a good broker will save you a lot of time and effort with their knowledge and work so it is in my opinion a little unfair if you get all the way up to 'ready-to-apply' and then run off to try and beat it yourself.