As a first-time homebuyer, navigating the complex landscape of property and mortgages can be overwhelming. In this blog we have highlighted the key points that every First Time Buyer SHOULD know before beginning the process. We will also delve into why utilising a mortgage broker is the key to unlocking a seamless and advantageous experience in securing your inaugural property purchase. As well as our free mortgage guide for FTB on our guides section on our website.
First time buyers, take note of these points
A mortgage broker and a mortgage adviser are the same thing!
A mortgage broker is worth the fee! You will receive much needed guidance support & questions answered throughout the whole process.
Your mortgage product will be chosen by you from multiple options. When you go directly to a lender (a bank) they will not make comparisons.
Rates change all the time and your broker will change your product if a better one comes up.
Your mortgage offer will be valid for 6-12 months
The Estate Agent works for the vendor (seller) not you, so be mindful of this on your property search.
When negotiating your price for purchase you can make an offer. Don’t rush this part always do a second viewing.
First time buyers don’t have to pay stamp duty up to £425,000
You don’t always have to do a survey, ask your broker if you aren’t sure
Ask solicitors for additional costs during the process.
You must have a minimum of 5% deposit , which can be gifted. The solicitor will want proof of where you have sourced the money
Transfer of deposit happens before your purchase completes.
A Lender will look at your bank statements in detail to search for any red flags which will be queried. (RED FLAGS: Pay day loans, CCJ’s, Defaults, excessive gambling, non-disclosure of debt).
A broker will be able to tell you if credit issues or red flags above will prevent you from getting a mortgage. There are some ways of potentially getting around obstacles.
As well as mortgage services a broker can provide insurance policies (life insurance, critical illness cover, income protection and general insurance).
Why use a Mortgage Broker as a First Time Buyer?
If you have never been through the mortgage process, then you are probably going to want some guidance. You can think of your mortgage broker as your mortgage guide. Navigating you through the multiple lenders and products that are available. The property market is constantly evolving and mortgage brokers are experts in this field. They can help you understand the process and costs, whilst being at the end of the phone for any additional questions you may have. No two mortgages are exactly the same and neither are the products that we offer. Your service is personalised around your needs. A broker helps first time buyers build a strong foundation for long-term financial success through smart mortgage decisions
We hope you found our tips helpful! We have plenty more where they came from and hope to help you onto the property ladder soon.
