First Time Buyers - Your guide to getting on the ladder
Buying your first home is an exciting – but a daunting task. This simple guide aims to cover the principle steps encountered in buying your first home.
1. Set your budget
Before you start searching for the perfect property, it’s important you know what size mortgage you can afford. Use the mortgage calculator to see how much you may be able to borrow. How much a mortgage provider will lend you will depend on your individual circumstances, the type of property you are buying and the mortgage providers lending criteria.
Try our loan calculator to see how much a mortgage might cost, or check to see how much you can afford to borrow for a new car, in four easy steps.
This applies to repayment mortgages.
Step 1 -
Put the amount you want to borrow in the total box, or the amount you can afford
to pay each month in the monthly cost box.
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2. Check out your mortgage options
There are a number of mortgage and repayment options available for first time buyers. Contact us for a free initial mortgage consultation so we can explain your options. We will be able to estimate the amount that you may be able to borrow and can provide you with a Mortgage Certificate showing your suitability as a borrower. This is useful when dealing with estate agents and sellers because it shows you are a serious purchaser.
3. Make an offer
You have found the property that is right for you, and it’s in your price range, you then make an offer to purchase. This is normally made to the vendor or to the estate agent acting on the vendors behalf.
4. Your offer is accepted
If your offer has been accepted, the property you want to buy is said to be 'sold subject to contract'. At this stage the agreement is not legally binding.
5. Appoint a solicitor or licensed conveyancer
When choosing a licensed conveyancer or legal advisor make sure you get a full breakdown of costs, so you can see what they will charge you. We have links with trusted conveyancers who you can use for this purpose.
6. Apply for a mortgage
We will use our specialised individual mortgage programme to find you the most suitable mortgage product available. We will then apply for the mortgage on your behalf.
7. Obtain a property survey and valuation
Your mortgage lender will require a standard Valuation for Mortgage Purposes to be carried out by a surveyor of their choice. You may want to have a more detailed Home Buyer survey or a full structural survey carried out for your own peace of mind – especially if the property is old or needs some work. You may use the surveyor of the mortgage lender to carry out this further work (at an extra cost) or you may appoint your own surveyor.
8. Exchange contracts
When your solicitor or licensed conveyancer has completed all the necessary checks, you'll be asked to sign a contract legally committing you to the purchase.
At this stage you'll also pay a deposit and agree a completion date. The deposit is usually a minimum of 5% of your property's purchase price. On average, you will have between two and four weeks before you can move in, so this is a good time to tell friends and colleagues, arrange insurance, contact the local authority, and make arrangements with utility companies.
9. Sort out your mortgage protection and insurance
To exchange contracts, you will need buildings insurance in place. We can arrange this for you. In addition we can provide mortgage protection, family protection and contents insurance and as Independent Financial Advisers we can find you the best deals available.
10. Drawing down the mortgage
Your solicitor or licensed conveyancer will obtain the mortgage fund from the mortgage lender ready to pay the seller.
At this point you will be required to pay your solicitor or licensed conveyancer for their work and for extra expenses. like Stamp Duty and the Land Registry Fee. Your legal advisor will tell you how much these costs will be.
11. Completion
Congratulations, it’s the day you move into your new home. Your solicitor or licensed conveyancer will complete the purchase, then you can collect the keys and move in.
You can visit our sister company website to obtain some information regarding the tax situation.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Please note that this guide is for those buying a home in England, Wales or Northern Ireland.
Different rules apply for those buying in Scotland.
The Financial Services Authority does not regulate Conveyancing / Legal Services.
For more information on first time buyers contact Kate Beale on:
Tel: 01206 871120
Email: kate@bgafs.co.uk
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