1. Start Building Your Deposit
- Begin by saving for your deposit. The larger your deposit, the better your mortgage options. At the time of publishing, there are now schemes available where no deposit is required!
- Explore first-time buyer government schemes like Lifetime ISAs to boost your savings.
2. Check Your Credit Score
- Your credit score is crucial for mortgage approval. Check your credit report and address any issues. Adverse credit such as defaults, CCJ’s and missed payments may impact your score negatively, but there may still be options with specialist lenders.
- Pay bills on time and reduce outstanding debts to improve your score.
- Click here to download a free copy
3. Clean Up Your Current Account
- Lenders assess your financial stability. Keep your current account in good standing.
- Avoid overdrafts and manage your finances responsibly.
4. Determine How Much You Can Borrow
- Consult a mortgage broker to understand your borrowing capacity.
- Consider factors like income, expenses, and affordability.
5. Get Expert Advice
- Seek guidance from a mortgage broker or financial advisor.
- They’ll help you navigate the process and find the best mortgage deal.
When you’re a First-time buyer the process can be overwhelming… ALWAYS speak to a mortgage broker to help you understand the journey.
6. Understand All Costs
- Beyond the purchase price, consider additional costs:
- Stamp duty
- Legal fees
- Survey fees
- Moving expenses.
7. Explore Family Assistance
- Investigate ways your family can help, such as gifted deposits or acting as guarantors. There are a number of options for first-time buyers.
When Can I Start To Arrange Viewings?
Arranging Viewings:
- Start Early: As soon as you decide to buy a home, begin researching properties online. Look for homes within your budget and preferred locations.
- Contact Estate Agents: Reach out to local estate agents to express your interest. Provide them with your criteria (e.g., budget, desired features, location).
- Schedule Viewings: Arrange property viewings at convenient times. Be flexible and prepared to visit multiple properties.
- Take Notes: During viewings, jot down your impressions, ask questions, and assess whether the property meets your needs.
The Importance of an Agreement in Principle (AIP):
- What Is an AIP? An AIP (also known as a Decision in Principle or Mortgage in Principle) is a preliminary assessment by a lender. It indicates how much they’re willing to lend you based on your financial situation.
- Why Get an AIP?
- Credibility: Having an AIP demonstrates to estate agents and sellers that you’re a serious buyer.
- Budget Clarity: It helps you understand your budget and narrow down property choices.
- Speed: When you find the right property, having an AIP speeds up the mortgage application process.
- How to Obtain an AIP:
- Speak to a Mortgage Broker: Contact a mortgage broker or lender to discuss your situation.
- Provide Details: They’ll ask about your income, expenses, credit history, and the property you’re interested in.
- Receive AIP: Once approved, you’ll receive an AIP certificate stating the maximum loan amount you qualify for.
Remember, an AIP gives you confidence when making offers and ensures you’re well-prepared to move forward with your home purchase. It also, puts you in a more competitive position if other first-time buyers haven’t got one in place.
It’s important to see a mortgage adviser at the start of your mortgage journey, whether it’s your first mortgage or you’re looking to re-mortgage. Doing so will save you time and effort in the long run. I recommend speaking to us at FRANK Mortgages to compare fees and explore what’s on offer. Additionally, consider reaching out to us before you start searching for a property. We can review your personal circumstances, calculate what you can afford, and guide you toward the right properties from the very beginning.
