Buying your first home is an exciting milestone, but the process surrounding first time buyer mortgages can feel daunting if you’re unfamiliar with it. Here is everything you need to know!
Research and Preparation
Before you start looking at properties, it’s important to understand how much you can afford. Begin by assessing your finances. It’s a good idea to use online mortgage calculators to get a rough idea of how much you might be able to borrow. It’s also wise to check your credit score. If your score needs improvement, consider taking steps to boost it.
Getting a Mortgage Agreement in Principle
Once you have a clear idea of your budget, the next step is to obtain a Mortgage Agreement in Principle (AIP). This statement from a lender on how much they might be willing to lend you isn’t a formal mortgage offer, but it does show estate agents and sellers that you’re a serious buyer. Using a broker to secure your AIP can be beneficial, as they have access to a wide range of mortgages and can help you find the best deal.
House Hunting and Making an Offer
With your AIP in hand, you can begin house hunting with a real spring in your step! Working with a local estate agent is the easiest way to find properties within your budget and arrange viewings. Once you find the right home, it’s time to make an offer. If your offer is accepted, you’ll move on to the formal mortgage application process.
Submitting a Full Mortgage Application
After your offer is accepted, you’ll need to submit a full mortgage application. This is where your AIP comes in handy, as it speeds up the process. You’ll need to provide detailed financial information about your finances. This is another point where a mortgage broker can be invaluable. They can help you prepare your application, ensuring that you have all the necessary documents and information.
Undergoing a Property Valuation and Survey
Once your application is submitted, the lender will arrange for a valuation of the property. This ensures that the property is worth the amount you’re borrowing. It’s also advisable to commission your own survey to check for any potential issues with the property What kind of survey you choose will depend on the age and condition of the property.
Receiving the Mortgage Offer
If the lender is satisfied, they will issue a formal mortgage offer. This will outline the terms of your mortgage. Review this carefully to ensure you understand and agree with all the terms. If everything looks good, you’ll need to sign and return the offer to the lender.
Completing the Legal Work
With your mortgage offer secured, your solicitor will begin the legal work, known as conveyancing. This involves checking the legal status of the property, ensuring there are no disputes or issues that could affect your purchase. They’ll also arrange the exchange of contracts and set a completion date, along with handling the transfer of funds. Once this is all completed, contracts are exchanged, and the property is legally yours.
What Next?
Throughout the mortgage process, a mortgage broker can be a great person to have in your corner. So why not get in touch with a trusted one today?
