Conveyancing For First Time Buyer – Advice Guide

Conveyancing For First Time Buyer

Conveyancing For First Time Buyer

If you have deliberated that you wish to own a property, there are several things that you should undertake to ensure that the process becomes easy. Beginning with saving for a deposit for the mortgage application process, we discuss important matters about conveyancing for first time buyers.

Before you commence the search for a property, it’s important that you start saving. You should begin by saving in the least 5%-20% of the costs of the property you wish to purchase.

If you desire to buy a property costing a hundred and fifty pounds, save up a minimum of seven thousand five hundred pounds.

Savings that are beyond 5% makes it somewhat easier for you to apply for various cheaper mortgages. Ensure that you estimate your overall costs of purchasing a house and moving. See to it that you can afford to pay your monthly repayments.

As a fist time home buyer, one critical thing you ought to bear in mind is if you can really afford taking such a step. You are better of putting together a comfortable budget before you begin your quest for a property.

First Time Buyer

Buying a property for the first time requires one to be extremely sure that they can afford to undertake this step. You should begin by putting together a budget before you begin your property search.

Today, there are strict measures brought in place as you apply for mortgage finance. The financer will check to see whether you can afford the mortgage and will also stress test your ability of making payments should interest rates go up. The stress tests also determine circumstance changes such as having children and possible redundancy.

Through the mortgage application process, you will be needed to produce the financier evidence pertaining to your income and out-goings. Other than your monthly mortgage payments, there are additional costs associated with purchasing a home. Some of these costs include:

  • Stamp Duty
  • Costs for decorating and initial furnishing
  • Surveys Costs
  • Mortgage valuation and arrangement fees
  • Building Insurance
  • Solicitor fees
  • Removal costs

Affordable home buying schemes are a brilliant venture that gets you on the property ladder. There are various government backed schemes that have been set up to assist first-time home buyers and movers a helping hand as they embark on this journey.

If you can use one of these schemes, mortgage financiers will see to it that you can afford to pay the mortgage. Some of these schemes include:

  • Help To Buy Scheme
  • Shared Ownership Schemes
  • Affordable Housing Schemes
  • New Buy-Place Deposits when purchasing new homes

Locating a Mortgage

There are a lot of different mortgage deals that one can pick. Selecting the right mortgage can be quite a trick process. Choosing the right mortgage is dependent on various factors. Hence, it’s an excellent idea to conduct research and engage experts in this sector such as mortgage brokers.

If you are looking to purchase a house, it’s like buying freehold. It translates to you being the property owner and the land the property sits on. If you are buying a flat, you shall either purchase a leasehold or purchasing a share of the freehold.

Application Process

Whatever mortgage segment you apply, the financier will require to know if you can make payments should interest rates go up or should your financial circumstances change. You will be needed to prove your income, however.

You will have to show the financier your income, any evidence of any outgoings inclusive of debts, household bills and various living costs including; clothing, travel expenses and childcare.

Proving your income requires that you produce both bank statements and payslips. If you are an individual investor, you might be asked to produce records of your tax returns and produce papers of your business accountants prepared by an accountant.

Guarantor Mortgage

If you are having difficulty in getting a mortgage to purchase your first home, it’s important that you opt for a guarantor mortgage. It translates to a family member or guardian agreeing to take responsibility for mortgage payments when you are unable to make these payments.

We caution you that guarantor mortgages are not an experience that you enter without scrutiny since they are legally binding arrangements. The people that will be guaranteeing you ought to be financially capable of pay off your mortgage should you land you into difficulty.

It’s important that you talk with a mortgage broker to find out more about the financier will offer guarantor mortgages.
N.B.: Understanding fully the process of buying a home from the beginning to the end and the fees that you will be needed to pay on the way.

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