Buying your first home can be a daunting time, but don’t make it more stressful than it needs to be.
If you’re considering buying your first home, you’ll probably need a mortgage, which is a loan that uses a property as security for the lender.
Read our First Time Buyer guide to see how we could help.
How much can you afford to borrow?
A good step when you are thinking of buying your first home is to look at the costs that you would need to pay. The size of your mortgage is also determined by your deposit, the bigger the deposit, the better mortgage deal you will be able to get and therefore the lower your monthly repayments would be.
Get a lending decision
Before you start viewing properties, it’s a good idea to get a lending decision (DIP) from a lender which will give you an idea of how much you can borrow and it will prove to estate agents you are serious about buying.
DIP is normally valid between 30 and 90 days and this is only an estimate and isn’t a guaranteed mortgage offer.
Looking for a home
As you start looking for your new home ask yourself what you really need. Do you want somewhere in town? Or more rural? What about local schools? Where’s the nearest shop? How many rooms do you need? Do you want off-street parking?
Make your offer to the estate agent, based on the mortgage you can afford and the deposit you have available.
Applying for a mortgage
Having your key documents to hand when you’re applying will make the process smoother:
- Proof of ID
- Proof of address
- Proof of income
- Bank statements
- Proof of deposit
The legal requirements
You’ll need to appoint a conveyancer or solicitor to take care of all legal work. It’s important that you do this after you’ve received a mortgage recommendation from your broker or lender, as they need to be specifically approved on the chosen mortgage lender’s panel.
Mortgage offer, exchange and completion
Mortgage offer – This is a formal document which tells you that your mortgage has been agreed.
Your solicitor/conveyancer will carry out all the required checks, such as Land Registry searches, on the property.
Exchange – When the legal work is finished and contracts are signed, your conveyancer/solicitor will exchange them with the seller’s solicitor, pay your deposit and agree the completion date.
When you exchange contracts, you’ll need your home insurance to start. Buildings insurance is a requirement of your mortgage and is essential to protect you against damage caused by things like fire and flooding.
Completion – The completion date is the date of the legal transfer of the new property into your name and also when the balance of the purchase price is paid to the seller.
Normally you’d collect the keys from the estate agent dealing with the sale of the property. Once you’ve picked them up, you can start moving in.
we believe taking your first step on the property ladder should be an exciting and joyous time.
SN Mortgage Solutions are independent mortgage brokers working with a wide range of lenders who can advice on the entire process and provide quality advice.
Kindly contact us on 07551418599 or email us at sujatha@snmortgagesolutions.co.uk to book your free initial consultation.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.