First Time Buyer
Your home may be repossessed if you do not keep up repayments on your mortgage.
Navigating the housing market for the first time can be daunting, but taking your first step on the property ladder is more manageable with the right guidance. At GWT Mortgages, I specialise in helping first-time buyers in Colchester and across Essex explore mortgage options that fit their needs.
My Top Tips For First-Time Buyers
– Check Your Credit Report
Review your credit report and correct any errors. Aim to improve your score by paying bills on time and reducing existing debt.
– Save For A Deposit
Aim to save at least 5-10% of the property’s purchase price. The more you save, the wider the range of mortgage products that may become available.
– Calculate Your Budget
Use a mortgage calculator to determine how much you can afford to borrow. Factor in additional costs such as legal fees, stamp duty, and moving expenses.
– Get a Mortgage in Principle
Obtain a mortgage in principle (MIP). This is an estimate of how much they are willing to lend you, which can strengthen your position when making an offer on a property. I offer this service free of charge.
– Consult a Mortgage Advisor
As a Colchester-based mortgage adviser, I can help you navigate the various mortgage options and find the best deal for your circumstances. I will also go through the house buying process with you and support you every step of the way.
The House-Buying Process
1: Save for a Deposit
Aim to save at least 5-10% of the property’s value for your deposit. However, a higher deposit (such as 15-20%) often leads to better mortgage deals.
Tips:
- Set a monthly savings goal
- Research government schemes, such as the Lifetime ISA, which offer bonuses for first-time buyers.
- Cut unnecessary expenses or find ways to boost your income to reach your goal faster.
2: Get a Mortgage in Principle
A mortgage in principle (MIP) gives you a clear idea
of how much you can borrow, making your property search easier. It also shows sellers you’re a serious buyer.
Tips:
- Use a broker to help find the best deal for your situation.
- Have documents ready, such as proof of income and ID, to speed up the process.
- Keep your credit score in good shape by paying bills on time and avoiding major credit applications before applying.
3: Start Your Property Search
Now comes the fun part! Work with estate agents, attend viewings, and compare properties based on location, size, and future growth potential in the area.
Tips:
- Make a list of “must-haves” and “nice-to-haves” to stay focused.
- Research the area, looking at things like schools, public transport, and local amenities.
- Don’t rush! View multiple properties to understand what’s available within your budget.
4: Make an Offer
Once you find a property you love, it’s time to make an offer. Don’t be afraid to negotiate—many sellers expect it.
Tips:
- Check recent sale prices of similar properties in the area to inform your offer.
- Start with an offer slightly below your max budget to leave room for negotiation.
- Be prepared to adjust your offer if you face competition from other buyers.
5: Arrange a Solicitor for Conveyancing
Conveyancing is the legal process of transferring ownership from seller to buyer. A solicitor will handle all legal checks and paperwork.
Tips:
- Choose a solicitor experienced with first-time buyers to guide you through.
- Stay in regular contact to ensure all searches and contracts are progressing smoothly.
- Be prepared for additional costs, like searches and registration fees.
Step 6: Arrange a Survey and Valuation
A property survey will highlight any structural issues, while the valuation assures the lender the property is worth the mortgage amount.
Tips:
- Opt for a more detailed survey if the property is older or you have specific concerns.
- Use any issues found in the survey to discuss potential adjustments with the seller.
- Factor in survey costs when budgeting for upfront expenses.
7: Finalise the Mortgage and Prepare to Exchange Contracts
Once all checks are complete, your solicitor will draft the final contract, and your lender will issue a formal mortgage offer.
Tips:
- Review the mortgage offer thoroughly with your broker to ensure it meets your expectations.
- Get insurance in place, as it’s often required before exchange.
- Have your deposit ready, as this is typically paid when you exchange contracts.
8: Completion Day – Get the Keys!
Completion is the day ownership officially transfers to you, and you receive the keys to your new home.
Tips:
- Confirm moving arrangements and ensure utility accounts are set up.
- Budget for any immediate post-move expenses, like minor repairs or furnishings.
- Take a meter reading on move-in day to avoid issues with future bills.