Looking for your first home, time to move out of rented and have your own place, feeling a little overwhelmed by the prospect of it all.
This article will help to make one of the most stressful aspects of life easier, my name is Hadi Naqvi, a Registered Individual from Beneficial Mortgages and I have been a mortgage adviser since 2006.
So in this video I will give you the house buying process in an easy to follow guide.
In the first instance when you decide to buy a home you need to be aware of three key components to be able to obtain the mortgage you need to purchase the home you would like to live in.
This is Deposit, Income and Credit Profile. All play a factor in the process and can determine what the purchase price of the home is you are looking for. So in the first instance, have an idea of the type of property you are looking to purchase, then approach an adviser who has worked with First Time Buyers – like me.
The process then is assessing your circumstances, gaining an Agreement/Decision In Principle with a lender, which is a credit score and a credit check to see if you as an applicant can get past the initial lender checks. Once you have successfully obtained an Agreement/Decision In Principle, this will give you the mortgage amount you can potentially borrow, added with your deposit, you can then start looking for a property.
Once you have found a property, an offer needs to be made, if the offer is not accepted, you can revise the offer or move along to another property. Once the offer is accepted, the application for the mortgage is made, which includes the rate of interest and how much you are going to be paying per month.
At this point there will be a few factors not in your control, such as the survey, which at its core is done to confirm that the value of the property you have agreed to pay is what the property is worth. If the property is downvalued, you can decide what to do next, continue with the purchase at the lower price or move to another property. It is there to protect you.
If the valuation comes back satisfactory, your case is underwritten by the lender confirming your income and other aspects match the lenders criteria, then your mortgage offer is produced.
During this time, your solicitors selected will be dealing with the searches to ensure that the purchase can continue without issue – this is the conveyancing aspect of the purchase. When the solicitors receive the mortgage offer from the lender, they will prepare the contracts, apply to Land Registry to change ownership and finally, if Stamp Duty is applicable, prepare the forms for HMRC to pay Stamp Duty upon Completion.
When the purchase is nearing completion stage, Exchange of Contracts will take place, meaning that you now legally own the property, but you will only obtain the keys when completion takes place, meaning that the funds from the mortgage lender have transferred across to the owner of the property, thus completing the purchase.
(Your home may be repossessed if you do not keep up repayments on your mortgage)
This is just the basics and I hope that you have felt at ease, there are as with everything, different aspects to purchasing a property, such as repossessions, purchasing from family members and so on, which I will be happy to help you with, so click the link if you would like more advice or contact me on the number displayed below.