First Time Buyer's First Time Post - advice needed!

annagram

Hello,

This is my first post (on anything, ever – where have I been!) but I’ve been using the site for a while and I’d really appreciate some advice on FTBing and making an offer. I know there are a few people on here that think it is stupid to buy now but I feel that for us it is the right time to buy.

I’ll try to be brief – I am 4 ½ months pregnant and our landlady has decided to sell up only 2 months into our contract, she has given us until the end of the contract to move out (end May) but by then I’ll be 7 ½ months pregnant so she is allowing us to leave earlier if we want. With our own money and some from my parents we have quite a decent deposit for FTBers. We have been to see a mortgage advisor and have been agreed a mortgage in principal for £135,000 which would make the monthly repayments way over our budget so would only be looking to use £100,000 - £110,000 of this, max.

We have been to see a few properties and found a 3 bed terrace we quite like that needs a LOT done to it – new kitchen and bathroom, central heating installed, new carpets throughout, quite a bit of re-plastering and there is some damp in the bedrooms on the chimney breast. It has been on the market just over 3 weeks and is on for £139,950 – way over in our opinion. My OH thinks it would cost around £20,000 to get it all done if we were paying someone to do it but he would do it himself (with some help from a couple of builder friends) and thinks the cost could be around £6000 for the urgent stuff. I think it was a buy to let – he certainly hasn’t lived there for a long time and only bought in 2001, the EA couldn’t believe owner could let the tenants let it get so horrible.

The house two doors down is also for sale, same size etc but has been on for 8 months and has dropped down from £155,000 to £145,000 just before Christmas to £140,000 last Friday. It is in much better condition, new kitchen, and central heating but could probably do with a new bathroom. We didn’t like this one as much and we also feel that as FTBers and the skills my OH has it makes sense to buy somewhere we can improve (we’re mainly looking for a home we can make our own though and don’t plan to move for 7years ish depending on how many children we have!)

So my questions are - What would be a good offer to start with on the first one?

Should we do it in person? – we’re going for a second viewing tomorrow morning

Also – will we need to show the EA our mortgage agreement in principal? It states £135,000 but we’re not prepared to take on a mortgage that size! I don’t want the EA to think they can push us up just because we ‘could’ have a larger mortgage!

Thanks in advance and sorry it got so long!;)

Anna

annagram

Forgot to add - as it it wasn't long enough! - we are going to move in with OH's parents (in separate building so not too bad!) next month until we have house and/or work is done on it so we're not trying to desperately move before the baby is born and we won't have to live amid rubble! Will also save us a bit of cash in the meantime too.

Magic_Dragon

Hi

I have no advice really on the offer - I am sure someone more knowledgeable will be along soon!

I do have an 8 month old baby though. I cant imagine having to live in a building site with a tiny baby. So think about all the practicalities before you take on a big project ....

When we bought our house nobody asked us for proof of mortgage ect. They were happy enough that we were FTB and had a deposit!

I hope you managet to find a lovely house - it sounds as if you are in a very good position

gordonstights

annagram wrote: »

Also – will we need to show the EA our mortgage agreement in principal? It states £135,000 but we’re not prepared to take on a mortgage that size! I don’t want the EA to think they can push us up just because we ‘could’ have a larger mortgage!

I can't give you any advice on the offer price but you shouldn't need to show the mortgage in principal. Just tell you you have one and say you have chosen your mortgage provider with your own broker (to stop them offering their agencies services!) I prefer the EA to know as little as possible about what I can actually afford, so when they put me on mailing lists and ask my maximum budget I tell them the price of the house I am actually viewing at the time. Don't know if this is the right thing to do, but I don;t want EA saying to the vendor that I can afford a lot more than I'm offering and advise them to decline.

annagram

thanks for replies -

Magic_Dragon - we definitely won't be living in building site! OH parents only 20mins from house so he'd work there in between his own work, we decided that was best once we started to consider doer uppers!

gordonstights - I know! - we were a bit too keen to begin with and asked to view anything up to £150,000 but mainly in case they reduced prices if they'd been on a long time, have started to tell EAs we can't afford top ones but to inform us if any drop in price - wish we hadn't been so keen!

poppyblue_3

Hi

Not long gone through the scary FTB process myself. I would definitley go in at a much lower rate than the asking price using all the points you have already said to justify this. )You can always up your offer).

I didn't jhave to show my agreement in principle at all - when our offer was accepted they did ask for it but i just got my mortgage adviser to ring them and tell them that i am okay for the mortgage.

Hope this helps and good luck

annagram

Thanks poppyblue, yes it is a scary process! But exciting and we're probably in the best position we could be in I suppose, good deposit and somewhere free to live in the meantime etc. I could do without the extra stress whilst pregnant but ultimately all good in the long run!