First Time Buyer Mortgage
Your complete guide to the first time buyer mortgage process.
Buying a property can be an exciting and daunting experience, especially if it’s your first time. There are many steps involved in the home-buying process, and getting it right the first time is essential.
This article will guide you through the entire process of buying your first home in the UK, including the benefits of using a mortgage broker to help you along the way.
Step 1: Get your Decision in Principle
Consider your income, expenses, and current outstanding debt. Once you have a clear idea of your financial situation, you can determine how much you can borrow.
Before you start looking for properties, it’s a good idea to get your decision in principle approved. Your Mortgage Consultant will give you an idea of how much you can afford, what products are currently on the market, and what your monthly payments will look be.
Getting your Decision in Principle certificate can also give you an advantage when making an offer on a property. Estate agents and sellers will see how serious you are about purchasing and are more likely to accept an offer from someone who has already spoken to a mortgage professional.
Step 2: Find a Property
Once you know your budget and how much you can borrow, you can start looking for properties. You can search online, in newspapers, or use an estate agent.
Estate agents can be beneficial because they have access to properties still to be listed on the market. In addition, they are experts in their local area and will keep you updated with the hottest property coming up for sale.
Top tip: Right Move is the most popular website to find your new home, but some agents may advertise on Zoopla and On the Market.
Step 3: Make an Offer
Once you find a property you like, you’ll need to make an offer to purchase the property, which is submitted via your solicitor/conveyancer.
Your offer is usually based on the property’s market value or could even be more than the market value. If the seller accepts your offer, you will return to your mortgage broker to start the mortgage process.
Top Tip: You can look for local conveyancing lawyers to help you with the process, or your mortgage consultant can recommend a trusted lawyer to help you.
Step 4: Start the mortgage process (Get Prepared!)
Your mortgage adviser will ask for documents relating to your finances, for example, four months’ worth of payslips and four months’ worth of bank statements. In addition, they will check your ID and proof of address, for example, a valid passport and driving license.
Top tip: Most bank savings accounts need you to request a statement as they are produced annually. Phone your bank and ask them to generate a statement.
Top tip: Make sure your address is up-to-date on your documents.
Your mortgage adviser will then have a mortgage meeting with you to make sure you understand what mortgage you are applying for. After that, they will process all of the paperwork for you and look to get your mortgage accepted as quickly as possible.
After your mortgage is submitted, the underwriter at the bank will assess your documents, run credit checks and make sure your application is suitable for the bank. Then, the bank will instruct a surveyor to complete a mortgage valuation on the property. If you’re buying in Scotland, the valuer will produce a transcript of the Home Report.
Step 5: Mortgage Offer Approved
Once the bank has approved your mortgage, your mortgage adviser will send your mortgage offer document to you and your solicitor.
Your mortgage professional should allow you to protect your mortgage should the worst happen. Your Protection Call is where you finalise essential details for your life insurance, critical illness cover, family income benefit, and income protection.
Your adviser will tailor your recommendation to ensure you have adequate cover.
Step 6: Sign Missives / Exchange Contracts
A few weeks later, your solicitor will invite you to sign missives (Scotland) or exchange contracts (England & Wales).
This is where you legally sign to purchase the property. From this moment onwards, the seller is legally bound to sell you the property, and you are legally bound to purchase the property.
Once signed, your solicitor will give you a completion date/date of entry to work towards. Your solicitor will also advise you when your deposit has to be sent.
Step 7: Completion / Get your keys!
On completion day, your solicitor will transfer all of the funds to the selling solicitor.
Once the funds have cleared, you’ll be given the keys to your new home!
Benefits of Using a Mortgage Professional
Buying a property can be a complex and stressful process, especially if you’re a first-time buyer. That’s why many people choose to work with a mortgage broker. Here are some of the benefits of using a mortgage broker:
Access to a Wide Range of Lenders
Mortgage brokers have access to many lenders, including high-street banks, building societies, and specialist lenders. They can help you find a mortgage product tailored to your circumstances and needs. This is crucial with a first time buyer mortgage.
Shopping around for the best mortgage deal can take time and effort, especially if you’re unfamiliar with the process. A mortgage broker can save you time and hassle by researching and comparing different lenders and products to find the best deal.
Mortgage brokers are experts in the mortgage industry and can provide you with valuable advice and guidance throughout the home-buying process. They can explain the different types of mortgages, the pros and cons of each product, and the eligibility requirements for each lender. First Time Buyer Mortgage’s can have special products available.
Help with Paperwork
The mortgage application process involves a lot of paperwork, which can be overwhelming for first-time buyers. A mortgage broker can help you with the paperwork, ensuring everything is completed correctly and submitted on time.
Mortgage brokers have excellent negotiation skills, and they can use their experience to help you secure the best deal for your mortgage. In addition, they can negotiate on your behalf with the lender, ensuring the entire process goes as smoothly as possible.
Buying your first home can be an exciting and rewarding experience but also challenging and stressful. By following the steps outlined in this article, you’ll be able to navigate the home-buying process confidently and efficiently.
Working with a mortgage broker can also be an intelligent choice, as they can provide you with valuable advice and guidance and access to a wide range of lenders and products.
With the proper support and guidance, you’ll be able to find your dream home and start building a bright future for yourself and your family.
This First Time Buyer Mortgage Guide was written by Dean Fleming who is a Mortgage Professional at Dean Fleming Mortgage Brokers. You can read our client revies here.