First Time Buyers
Looking to buy your first home and experience the joys of being a homeowner? Whether this is the very first step or it's something you been thinking about for a while, either way, congratulations on starting the process to becoming a homeowner! Buying your first home is a big milestone in everyone's life, and one they should be proud of. It's an amazing achievement to have a place to call your own, but where do you start?
One in three purchases come from first time buyers, and we help many of these by providing the right advice and right support to achieve the right outcome. We understand the complexities of buying a home and offer a professional and easy to understand service, so you feel comfortable in making the right decisions.
Knowing where to start can be overwhelming, but our friendly and experienced mortgage brokers are by your side every step of the way to support you and answer any questions you may have. We want you to have confidence buying your first home, that is why we provide a dedicated service to fully manage the house buying process and keep you updated throughout every stage.
Read our step by step guide below to know more about the process and how we support you.
Speak to a mortgage broker
Before you start looking for your dream home, you need to understand your budget and the costs of buying. Speaking to our expert mortgage brokers allows you to have a great understanding of how much you can borrow, what you can do to better your circumstances, and how to put yourself in the best possible position when making offers.
Review your documents
After our call, your mortgage broker will request documents from you so they can fully understand your circumstances and review which lenders are best suited to your situation. We are the experts when it comes to mortgages, and our mortgage brokers know exactly what documents and information lenders are looking for.
Review your credit file
Lenders conduct a full credit search with every mortgage application which leaves a footprint on your file, so understanding your credit report before this stage is key. We know which main credit agencies lenders use and how to assess your credit report, so you're in safe hands.
Understand your budget and costs
We provide a breakdown of the fees and costs associated with the mortgage that are tailored to you. Alongside this, we provide useful information about other associated costs you need to consider when buying your first home, such as legal costs, stamp duty and surveys.
Getting a mortgage certificate
Now you know how much you can borrow, your mortgage broker will produce a mortgage certificate to confirm your borrowing. This useful certificate confirms we've assessed your circumstances and are confident you'll achieve the stated borrowing amount.
Viewing properties
You now know the property prices available to you and with your mortgage certificate, you can feel confident viewing potential homes. Being a first time buyer who has a mortgage certificate put you in a strong position when making offers. Make sure you have plenty of questions for the estate agents & sellers!
Offer accepted
You've made your offer and it's been accepted, congratulations! Now the real work begins. Let your mortgage broker know as soon as possible with the property details and the mortgage application can begin.
Mortgage application submitted
Our mortgage brokers will provide an illustration outlining the details of the mortgage you'll be applying for and ensure you're happy and understand before proceeding. Once a full mortgage application is submitted, a full credit check is performed and it'll be assessed by one of the underwriters at the chosen lender.
Property valuation
Lenders instruct a mortgage valuation on your new home to ensure for their purposes, it's value and suitable for them to lend against. It's a basic valuation and it's usual they don't provide you a copy. As you'll be living in the property, we'll discuss more in-dept surveys you should consider, such as a a homebuyers or building survey.
Underwriting assessment
The underwriter at the lender will review the credit file, the information on the application and ensure the documents provided evidence this. They check to see if you fit their lending policy, and may have further questions. Your mortgage broker will be on hand to liaise with the lender and keep you updated at this stage.
Mortgage offer
Once the lender has completed their checks and they're satisfied, they produce a mortgage offer which confirms they're happy to lend subject to legal checks with the solicitor. Getting a mortgage offer is great news as it means the lender is happy to lend to you. We review the mortgage offer and ensure you still have the best mortgage terms available.
Financial protection review
Now the solicitors are completing their checks and conducting the necessary legal work to complete the purchase, it's key we review what financial protection you currently have and what you should be aware of when owning your first home. We talk you through the importance of protecting your mortgage, your income and your home, and help put the financial safety nets in place so they pay out when you need them.
Exchange of contracts
With all the legal work sorted and conditions met, you'll exchange contracts with the seller so you're now legally committed to buying the home. This is when you'd start your protection policies and buildings insurance.
Completion
The final step. On completion day, funds are transferred, and you'll receive the keys to your new home. You're now officially a homeowner!
Useful Information To Know
Deposits
The size of your deposit plays a significant role in the mortgage rates available to you. The larger your deposit, the lower your mortgage rate may be. For every 5% extra you contribute towards the purchase, the better the mortgage rates & terms can become. Lenders may also consider increasing the amount they can lend with a larger deposit. Common deposit sources are from savings or gifted money from family.
Income evidence
Lenders assess income differently for employed and self-employed individuals.
For employed applicants, proof of income typically includes 3 months payslips, P60s and employment contracts. They also review any variable income you receive, such as bonuses, overtime and commission.
For self-employed individuals, lenders require tax calculations with overviews, business bank statements and company accounts. Lenders use your taxable earnings to support lending, so you need to be able to evidence your earnings for mortgage applications on the appropriate documents.
Credit commitments
Your existing credit commitments, such as loans, car finance and credit cards, impact your affordability. Lenders consider your existing debts when assessing your ability to afford a mortgage. We'll help you understand how your credit commitments influence your borrowing capacity and work with you to find the most suitable mortgage options.
Solicitor
As part of the house buying process, you'll need a conveyancer to process the legal aspects of the purchase. They conduct searches on the property, review contracts, explain legal terminology, transfer funds for completion, and represent you & the lender in the process. Having a good solicitor is key as they play a vital role in the process.
Start your journey today
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