Buying a property for the first time is an exciting prospect, but finding the right mortgage for you may not be as easy as you would like. With so many lenders and mortgage deals to choose from it can be a daunting prospect to determine what mortgage to choose. Comparison sites may be of limited value, especially if you are buying your first property and generally speaking lenders tend to offer more competitive rates to the intermediary (broker) market. That is where we can help.
As qualified professionals Aspire Financial Services will deal with your mortgage application throughout the entire process. This means you can be confident that our expertise will achieve the best outcome for you. We will liaise with the lender on your behalf, smoothing the way for you as much as possible.
First Time Buyers
It is important to seek advice before beginning your property search for many reasons. For example, trying to understand your maximum borrowing seems simple but varies from each lender. Multiple factors come in to play such as age, employment, income types (commission/overtime etc) and credit history. With our support, advice and guidance we will remove all the stress and identify the most suitable mortgage deal for you.
When trying to view a property the estate agent will often ask if you have a DIP. That is a Decision in Principle or Agreement in Principle (AIP). It is a ‘light’ form of mortgage application, not underwritten or binding. It simply provides an indication, based on your circumstances, of the borrowing amount possible from that lender. If you have one, the estate agent has greater confidence in your position, which will help with the negotiations and increases the likelihood of your offer being accepted and the property therefore being taken off the market. It is advisable to ask your broker to run the DIP, as some lenders will record this on your credit file. A broker will know which lenders to avoid and won’t run multiple DIPs.
A mortgage is a loan that is secured against your property. The lender will lend you a portion of the money, you provide the balance by way of a deposit then buy the property, the lender then places a charge against the property, thereby securing their loan. You become the property owner and over time, providing you keep up with the payments, the mortgage will be paid off, and the charge is removed.
As your search for a suitable property may take some time, and lenders frequently changing their rates and criteria it sometimes means that the mortgage recommendation prepared for you at the start of the process is superseded by a more suitable option when you have found the right property. When ready to proceed, we will submit your full application to the chosen lender, we include all supporting documentation, your solicitor’s info and details of the chosen property. The lender will then carry out checks subject to their lending criteria, they will also initiate a basic mortgage valuation to ensure that the property is suitable security for the loan. Depending on satisfactory checks and valuation, you will receive your mortgage offer. A copy will be sent to you, your mortgage advisor and your solicitor.
To ensure there are no factors relating to the property that might affect your purchase your solicitor will carry out ‘searches’. The solicitors for each side will then draw up the contracts to prepare for the exchange between buyer and seller.
Your solicitor will need your deposit funds, they will also check you have your buildings insurance ready to go, which we can arrange for you, then agree on the date for the completion. Along with handling the exchange of funds, your solicitor will also manage the signing of contracts and confirm to the sales agent they can release the keys to you for your new property.
What else do I need to know?
At Aspire Financial Services we know how complex the process can seem for first time buyers. Therefore, we will walk you through each step of the way offering full advice and guidance. We will talk you through the processes and advise on conveyancing and protecting your investment.
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