First time buyers often struggle to move fast enough to secure the property they want due to their lack of experience. But with a little research you can work out what you need to have prepared ahead of time so you’re ready to move when the perfect property becomes available.
Here we will offer tips for first time buyers to help them secure their first properties as quickly as possible and with minimum fuss.
Get an Agreement in Principle Ready
Many first time buyers stumble in their efforts when it comes to securing a mortgage, but this obstacle can be avoided by getting an Agreement in Principle ready before you actually need to apply for a mortgage. It basically means to get a lender to check your details to see if they are likely to agree to offer you a mortgage before you actually apply for it.
To get an Agreement in Principle, the lender will check your earnings, credit history and other relevant financial information to see how eligible you are for the mortgages they offer. If you pass their checks, then they will provide you with a certificate which details how much you could potentially borrow for a mortgage. You can then show this certificate to estate agents and house sellers to demonstrate that you can secure a mortgage.
Some sellers even require an Agreement in Principle before entertaining your interest in the property. They can take some time to acquire though, so get it done as early as possible.
Making an Offer They Might Refuse
When you find a property you want, you can contact a dependable estate agent or seller to make an offer. The Agreement in Principle shows you are serious and can actually afford the property (assuming you can actually afford the property!).
Most first time buyers will be looking for a bargain, and there are ways to try and negotiate the asking price down. Research the type of property it is and what kind of prices they go for in the same area. If it is significantly overpriced, then there might some wiggle room.
Arrange a Conveyancer in Advance
If your offer is accepted, then you will want to move things along as quickly as possible, especially if your offer was lower than the asking price. The seller is not obligated to sell to you until the exchange of contracts, even after accepting your offer. This leaves you open to being gazumped, which involves someone else making a better offer than you which the seller subsequently accepts.
To move things along as quickly as possible, be sure to have a conveyancer lined up ahead of time. This will usually be in the form of a solicitor or a licensed conveyancing specialist. They complete all of the required legal paperwork and prepare the documents of sale. They will also undertake any negotiation of the terms of the contract, and arrange the transfer of the title deed.
Conveyancers also handle the money, taking it from you and passing it on usually to the seller’s solicitor. This includes the initial deposit and subsequent money from the mortgage.
Apply for the Mortgage
Now you can apply for the mortgage in actuality and arrange the payment of the deposit. This part of the process also takes time so having everything lined up is the best way to go. Once this has all been taken care of, the last steps are the exchange of contracts and the handing over of the keys to your beautiful new home.
All information posted on this website is merely for information purposes. It is not intended as a substitute for professional advice. Should you decide to act upon any information on this website, you do so at your own risk