First Time Buyer Guide First Time Buyer Guide Buying a house is always exciting, but can often be a daunting task too! In this guide, we talk you through each stage in simple terms that are easy to digest and understand, but if there’s anything you’d like explaining in a little more detail, please don’t hesitate to get in touch with your dedicated mortgage adviser who will also be on hand whenever you need them. What is a mortgage? If you don’t have enough money to buy a house outright with cash (which most people don’t), then you would take out a mortgage. The mortgage is the loan that you would use to buy the property with You would agree to pay the money back each month, over a set period of time to suit both you and the lender The lender would assess your current and future situation, so would look at your income, outgoings, deposit and credit score to look at the overall amount that they would be able to lend You would need to put a deposit down yourself too, often starting at 5% of the property purchase price Using your deposit along with the lenders mortgage loan, you are able to buy your new home Because the loan itself is secured on the property itself, your home may be repossessed if you fail to keep up your mort- gage repayments I am thinking of buying a house, what do I do first? The first thing to do is contact us. We will go through your affordability with you, so we would look at the same things the lender would look at. So that’s your current situation, your income, outgoings, deposit and credit score to look at the overall amount that you would be able to borrow. Or as we call it your ‘Borrowing power!’. Knowing your Borrowing power is important, so that you know you are looking at the right price range. If you are ready to go, we would move a step further and get you a ‘Decision in Principle’ (DIP) This would be where the lender would credit score you to make sure that you are able to secure a mortgage based on the figures we have talked through. (for more information on how to check your credit score, please see our ‘How to get Mortgage ready’ guide.) Getting a DIP will confirm the borrowing in principle, so that any offers you want to make on properties a bit more clout, as the vendors can see you are not only serious about the property, but you have already taken the first steps to securing the mortgage too. Starting your property search Before you start looking at properties, it is a good idea to write a list of all the requirements that you want your new home to have for you, for example – Garage Downstairs toilet Garden Parking spaces School catchment areas Open plan Must be within a certain commuting distance Number of bedrooms Close to transport links Shops near by Activities for the family Pubs/restaurants within walking distance It would also be a good idea to ask the current owners or the estate agent doing your viewing a few questions to get to know the house too – What are the council tax payments each month? How much does it cost for gas and electric each month? Are there any service charges or ground rent to pay each year? What are the neighbours like? What has prompted the current owners to move? Whats the internet/WiFi strength like there? In addition to your questions, make a note of the maximum price that you are prepared to offer. It is easy to get carried away when you find one you like, but having this discussed and agreed before you go for your viewings, means that you are focused in on what you are looking for and what you are prepared to pay to achieve it. For more information or to arrange a mortgage quote please get in touch Call 01623 232526 www.hallwardifa.co.uk