First-Time Buyers
Our essential First-Time Buyers guide
We walk you through those first crucial steps of buying a property and getting on the property ladder. As a First-Time Buyer we help break down those unfamiliar terms and jargon.
First-Time Buyer looking at buying your first home? Here’s what you need to know…
Getting a mortgage to buy as property is one of the biggest financial commitments of your life. Although that can be a very scary concept, it can also be one of the most exciting and rewarding and doesn’t need to be a difficult process. Let us break it down for you.
Step 1 - Saving a deposit
A deposit is the amount of money you contribute upfront towards buying a property, and also acts as a security against the loan you will be taking for the rest of the purchase price. You’ll need this amount saved before you apply for your mortgage (loan). Usually, the minimum deposit is at least 5% of the property price, for example, if the house you want to buy is £200,000 then you would need at least £10,000 as a deposit. Generally speaking, the higher the deposit you can afford to put down, the lower your monthly repayments will be.
Step 2 – Find out what you can afford
Speaking to a good Mortgage Adviser and getting good mortgage advice in Sheffield or wherever you are, is where your journey should begin and it just so happens you’re in the right place. Many mortgage advisers charge a fee and some will not charge you at all for their mortgage advice, in the hope that eventually they’ll get your business. We only charge a small fee that simply helps cover our administration costs. As a First-Time Buyer the most important thing is to find a Mortgage broker that you trust, like and most importantly feels like they’re giving you good mortgage advice, after all, these are the most important things. The first step of finding out what you can borrow and what you can afford (your budget) is key to getting you moving on that all important property ladder.
Step 3 – Finding a property
Inevitably, you’ll spend a lot of time looking for houses on websites such as Rightmove and Zoopla before you have an idea about what’s available within your budget. OK, so you’ve found a property that matches your needs and budget, what next? It’s important that you view properties in person so you can get an understanding of the property and its potential, things that you just can’t get by looking online. If you have little experience of property, it’s also a good idea to take someone with you who does, like a home-owning friend or family member. Viewing a few properties for comparison is also a good way to gain that all important perspective. Our Home Buyers Guide is a great place to start and click here to view the supporting blog.
Step 4 – Making an offer
Once you’ve found a property you love, you can then make an offer. Deciding how much to offer can be difficult and there’s no exact science to it. Be prepared that very few first offers are accepted, so don’t let that crush your spirits. It’s common to make an offer that’s below the asking price and you needn’t be nervous about doing so, but if the property that you’re making an offer on is really popular, then you might find that some people will offer in excess of/over the asking price. Again, it’s not an exact science. Once you’ve decided on how much to offer, you can inform the estate agent. Don’t worry, you’ll almost certainly get another bite of the cherry if your first offer isn’t accepted. Remember it’s a negotiation. Know what you can afford, how much you think the property is worth and how much you’re willing to pay for it, and stay within these limits.
Step 5 – Applying for a mortgage
Applying for a mortgage is where things can get a little complicated if you don’t have any knowledge about mortgages. If you want to make this stage of getting your first home as easy and stress-free as possible, using a good Mortgage Adviser in Sheffield is the best option. Hopefully by following Step 1 you’ve already found one and that’s why you’re here. To get started on your application simply book a mortgage appointment with 3Sixty today. A good Mortgage Adviser should take time to understand your circumstances, listen to what you want and then advise you as to what may be best for you. Word of caution here, not all advisers are created equal. Some charge for an appointment or for an Agreement in Principle to tie you in, some will apply for the mortgage for you and that’s it, others charge a large fee or nothing at all.
We’re a Mortgage Broker in Sheffield but our clients are from all over the UK and here’s why;
We don’t charge a fee for our appointments and we don’t charge for an Agreement in Principle.
We offer face-to-face, phone and zoom appointments. The majority of our appointments are done over the phone, that’s why even as a Mortgage Broker in Sheffield we can and will help you wherever you are.
We charge a very small fee which purely covers the cost of our administration and is only payable upon application of your mortgage, we don’t believe in trying to tie you in.
We’ll help you with banks, solicitors and estate agents and support you all the way, taking the stress out of the process right up until you get your keys
Step 6 – Finding a Conveyancing solicitor
Every purchase and most remortgages will require legal work, for that you need a solicitor and in most cases you’ll have to instruct the solicitor yourself. Your conveyancing will start after your mortgage application offers. It’s very important that you don’t just go with the cheapest solicitors, ensure you do your research and get recommendations before deciding on your chosen solicitor. We can help you with that too. We’ll provide you with three quotes from a wide range of solicitors we work with and let you make the decision. The conveyancing process consists of carrying out searches and enquiries, drafting and checking the contracts between you and the vendor, dealing with the Land Registry, paying any stamp duty and dealing with the exchange of funds.
Step 7 Buildings insurance.
It’s a condition of all mortgage lenders that you have Buildings insurance in place before you legally own a property. Again, try to avoid simply going for the cheapest, as things such as level of cover, likelihood of them paying out and their Defaqto rating should all play a part in your decision too. We can provide you with a quote sourced across a wide panel of providers to get you cover that you can afford and is right for you.
Step 8 – Exchanging contracts
Once all the searches and enquiries are completed, your solicitor and the seller’s solicitor will exchange signed contracts and the buyer will need to transfer the deposit. Before the exchange can happen, several things must be prepared, such as a written Mortgage Offer, an agreed completion date and of course evidence of buildings insurance. The exchange of contracts makes the agreement legally binding which will then put your mind at ease.
Step 9 – Completion
Once the exchange has taken place, it will then just be waiting for completion day. On completion day, the money will be transferred to the seller, and you can collect the keys from the estate agent.
Step 10 – Move in
Sorry that’s the only thing we can’t help you with.
Book an appointment with 3Sixty Financial Solutions today. Our bookings page will allow you to choose a date and a time that suits you. You can also choose whether you’d like a face-to-face, video or phone call appointment. Once you’ve booked, one of our Mortgage Advisers will call you back at your chosen time and get you started on your mortgage journey.