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First Time Home Buying Guide - Page 3 of 11:
So, let's take a look at the various steps involved in the first time home buying process. It's useful to know that these steps are also applicable for the home buying process in general, although as you are reading our First Time Home Buying Guide we're naturally going to assume you are seeking to buy a home for the first time.
Take into account the location, and the local amenities such as schools, doctors, shops, public transport and proximity to your place of work. You'll also need to have an idea of the type of property you would like to live in, for instance will your best solution be to live in a flat, or would you prefer to have a house with a garden, and a garage? How many bedrooms will you require, and is there potential for expansion?
For more information on buying a property please see our Essential Guide to Mortgages.
Get in touch with a Mortgage Broker, like ourselves here at Shire Direct. We'll carefully assess your circumstances, needs and aspirations. From this we'll provide advice and a recommendation on the most suitable mortgage for you, and come up with an in-principle decision as to how much you can borrow. If you don't have a Solicitor to act for you, most mortgage intermediaries will be able to recommend a reputable practice. For more information on Mortgage Brokers, please check out the following pages:
It's a good idea to check properties for sale online too! And there are numerous great website's out there to help with this, including Estate Agents' own website's as well as websites which which take feeds of properties for sale from a variety of Estate Agents and often provide extra details and information, such as information about the area the property is situated in, its nearby amenities and facilities, proximity to transport networks, and some even provide sophisticated demographic information about the neighbourhood ranging from percentage of homeowners with satellite television to detailed crime figures.
Remember though, it's important to not get too carried away - be realistic, and stick to your budget - don't bite off more than you can chew!!
Examine the Home Buyers Pack, and if all is to your satisfaction, you will make your offer to the vendor to purchase the property "subject to contract", and usually "subject to survey" too. You should also establish which fixtures and fittings will be included in the sale, and which may be for sale, and be prepared to negotiate.
Be sure to take into account the housing market conditions - as a first time buyer you're in a particularly strong position to buy, as you don't have a property to sell. If the market is slow, you may be in a position to negotiate a price that could be up to 10% less than sale price, or even more! This could save you literally thousands of pounds, so it is really worth having a haggle - you never know your luck!
For more information on the property sale, please check out the following page:
For more information on the Offer of Advance, we recommend you take a look at the following page from within our Mortgage Glossary...
Your Mortgage Broker and/or Lender will now commence the processing procedures, and will instruct a property valuation. On receipt of satisfactory replies to their income and employment enquiries, together with a valuation that confirms the property will act as suitable security, the Lender will issue a formal Offer of Mortgage.
For more information on the mortgage application process, please visit the following pages:
For more information on the legal procedures, please check out the following pages within our Mortgage Glossary.
This is the point of no return! Once contracts are exchanged between solicitors on their clients' behalf, both the buyer and vendor are committed to the transaction. You are legally committed to buying the property, and the vendors are legally committed to sell it to you. At this point the solicitors will also usually agree a date for completion
For more information on exchanging contracts, please check out the following page:
Your solicitor will now request the mortgage funds from the lender in readiness to transfer money to the vendors' solicitor in return for the legal transfer documents and the keys to your new home.
For more information on how property completion takes place, please check out the following page:
...finally after all the hard work of unpacking boxes, and arranging furniture in your new home is done - it's time to put the kettle on and have a nice cup of tea - you deserve it!
Well that wraps up our look at the first time home buying process, we hope you found it useful and easy to follow. Next up we'll take a look at the different mortgage repayment methods.
Mortgage Repayment methods explained NEXT ›
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Over £2,000 worth of Argos Vouchers to be won in the Shire Direct Grand Prize Draw 2008! Terms and conditions apply - please read article for full details.
Claim £100 worth of Argos Vouchers upon completion of your transaction throughout 2008. Terms and conditions apply - see our Vouchers Special Offer page for full details.
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.