There are steps to take before you buy your first home. At The Mortgage Dog, we understand that if you’re a first-time buyer it can be daunting or something of a dark art.
So we’ve put together this step-by-step guide to help you so you know what you need to do next.
If there are any phrases you’re uncertain of, we will be happy to answer your questions, even if you’re not ready for a mortgage yet. Contact us here
If you’ve bought a home in the past, you may need to refresh your memory if it’s been a while since you house-hunted. So here it is. Why not keep a copy of our infographic of the steps needed too?
Steps to buying your first home
EARLY DAYS
- RESEARCH Look around the area you’d like to buy and identify your ideal home and average prices. For example, let’s say a 3-bed semi is roughly £100,000 (it may well be more but it’s an easy number to work with).
- SAVE, SAVE & SAVE Based on the above house, how much will you need? The minimum deposit you can put down is 5% (£5,000) , but we’d recommend getting at least 10% (£10,000) as you’ll get a much better interest rate and more likely to be accepted.
- STRATEGY CALL Once you’ve started saving now would be a good time to have a Strategy Call from The Mortgage Dog. We’ll run through all the costs associated with buying a house, such as solicitors etc. Once we confirm that you are able to obtain the property you would like, we issue an Agreement in Principle (AIP).
- AGREEMENT IN PRINCIPLE Once you have this, this is your “golden ticket” to get an offer accepted on a property as this is your proof you can get a mortgage and ready to go
- FIND A HOUSE Once you’ve found the dream house, you’ll need to ring the estate agent and arrange a viewing. Let them know you have an AIP to let them know you’re serious.
- PUT AN OFFER IN During our strategy call earlier in the process we will give you hints and tips on how to deal with an estate agent!
Remember, some agents will tell you that you need an appointment with their in-house mortgage adviser to have the offer accepted. You do not need to. You can deal with any mortgage adviser you want to.
GET YOUR HOUSE IN ORDER
- OFFER ACCEPTED Congratulations! Now get back in touch with us and we’ll arrange an appointment to run through the final numbers!
- PREPARE documents requested such as payslips and bank statements
- APPOINTMENT This is relaxed “no stupid question” zone. So, ask as many questions as you like – this is why we are here! We will search the whole of the market ensuring you get the best deal that is available to you.
Some are exclusive and not available direct with the banks! We’ll run through how much everything is going to cost on a monthly basis such as mortgage, buildings & contents insurance and life/illness insurance.
We show you this on a budget planner so you know how much spare money is left after the essential bills are covered.
- APPLY Only once you are happy with the figures discussed in the appointment will we start the ball rolling and start the application on your behalf.
- INSTRUCT A CONVEYANCER/SOLICITOR It’s important to remember that not all banks work with all solicitors. Once you’ve been to your appointment we’ll know who the bank/building society will be so we can help you choose who’s going to be the best option for you.
- INSTRUCT SURVEYOR Although this is optional, we’d always recommend getting at least a Homebuyers’ Report as they will give you an in-depth report on the condition of the property.
- UNDERWRITING The underwriter may come back to us with some questions. We work with the underwriter to get the case agreed as quickly as possible.
- VALUATION The mortgage company will insist on the property being independently valued.
- OFFER Congratulations this is the formal milestone that your mortgage has been fully agreed.
- INSTRUCT SOLICITOR TO CARRY OUT SEARCHES Usually a solicitor will ask for £300-£500. This will come off your final bill with them.
- SOLICITOR ENQUIRES & RESPONDS TO REQUESTS
GETTING CLOSER
- SIGN MORTGAGE DEED
- AGREE COMPLETION DATE
- GET PACKING
- PAY DEPOSIT
HOME SWEET HOME
- EXCHANGE CONTRACTS This is when you should put all insurances live for the property as you’re financially liable for the property now… there’s no backing out!
- COMPLETE TO PURCHASE Welcome to your new/first home…
Remember, that your home may be repossessed if you do not keep up repayments on your mortgage.
