Amy Kadir, mortgage broker at Lonsdale Mortgages St Albans, Hertfordshire said: ‘Clients often ask us what they need to do to purchase their first home. Below we have put together a list of ten key steps you need to go through to purchase a property. We can save you time and money on your property purchase.
We are a ‘no-fee’ mortgage broker and will not charge you any fees for our mortgage services, except when you re-mortgage through us with your existing lender. Otherwise, we are paid commission by your provider when your mortgage completes. Call our mortgage brokers on 01727 845500 to find out how you can save time and money on your property purchase.
Ten key steps for first time buyers wanting to purchase their first home
1. Save for a deposit and check your credit rating
Many of the products available on the mortgage market require large deposits, and this is especially true for first time buyers looking to purchase their first home. It is worth starting to save a deposit a few years before you want to buy your first home. If you can’t save enough for a deposit, there are other options our mortgage brokers can discuss with you.
2. Work out how much you can borrow and what type of property you want to buy
We recommend that before you sign up with an estate agent and view properties you give your Lonsdale Mortgages broking team a call and get mortgage advice. What you can afford will depend on your deposit, salary, and your credit rating. We will review your salary and savings and your income and expenditure so you know how much you can borrow. We can check your credit rating and assess your deposit and give you an idea about mortgage rates and suitable products. We can also calculate how much stamp duty will cost and how much mortgage protection cover you might require. Knowing this information as early as possible is important as you know how much your monthly mortgage payments will cost and what price of property you can afford.
3. Secure a mortgage agreement in principle
Our mortgage brokers can liaise with the mortgage lenders to confirm how much they are prepared to lend you, what products you can apply for and agree a mortgage agreement in principle. This puts you in a better position to secure a property as the estate agent knows that you have the finance organised before your offer is accepted.
4. Find an area you like and decide where you want to live
When you know how much you can afford to spend on a property you can decide where you want to live. If you like a particular location, you can check the price of property available and call the local estate agents and be added to their mailing lists, so you know when new property comes available.
5. Put in an offer on a property
After you have looked round several properties you will begin to know what type of property you are looking for. You can see what prices similar houses have been sold for locally on Zoopla or Rightmove or the Land Registry. The number of other people interested in the property will affect how much you offer, but if you have your mortgage agreed in principle and you don’t have a property to sell, you might be in a better position to have your offer accepted.
6. Speak to a mortgage broker to agree your mortgage
When your offer is agreed go back to your mortgage broker who can organise your mortgage with the lender. Using a mortgage adviser saves you time and money at a point where you have lots to organise. Our Lonsdale Mortgage brokers can also offer protection advice so whatever happens you will always be able to pay your mortgage payments.
7. Organise a survey on your property
Surveys are optional but a survey is important as it assesses the property and can show up potential problems. Most surveyors provide either a condition report, a home buyers report or a building survey. The cost of each one depends on the type of property, its size and where it is located. Remember the house survey your mortgage lender organises is different from your own survey. The mortgage lender will be looking for different things so it’s important to have an independent survey done too.
8. Choose a solicitor or conveyancer
After your offer is accepted conveyancing is the legal process you go through to purchase your property. It involves undertaking searches and drawing up and checking contracts and getting in touch with the Land Registry to pay stamp duty.
9. Exchanging contracts
To complete on your property purchase you will exchange contracts before completion. The buyer’s and seller’s legal team swap the signed contracts and you pay your deposit for the property. Before this day all your mortgage offers will be ready. Your solicitor will contact the Land Registry and lodge an interest in the property and transfer the deeds into your name.
It normally takes a few weeks between exchange and completion allowing you time to get ready to move into your property, organise a removal company and buildings and contents insurance. On the day you complete the money will be transferred to the seller and you get the keys to your new home!
A mortgage broker can provide mortgage advice and general advice in relation to purchasing a new home. Call the Lonsdale Mortgage broking team on 01727 845500 for personalised mortgage and protection planning advice.
As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments.