First Time Buyer
Taking your first step onto the property ladder might be something you’ve dreamed about for years.
A first time buyer is usually someone that has never owned a property before, in the UK or abroad. However some lenders have a slightly different view on this if you haven’t owned a property recently. If you haven’t owned a property in the last year or 3 years, they will class you as a first time buyer.
What documents will first time buyers need?
Generally you will need proof of income (Payslips, or Accounts if you’re self employed), Bank Statements, and Proof of ID, you will usually need some form of proof of deposit, this can vary between lenders.
Depending on the application you may require more documents. If your lender or broker asks you for more documents, this is normal practise, so don’t worry.
How much can I borrow?
This is very important before you start looking at properties. It is worth speaking to a broker who can give you an idea of how much you can borrow. You’ll also need to consider legal fees, stamp duty, and moving costs on top of the property value.
Mortgage in principle
The next step would be to get a mortgage in principle which is a statement from a lender on how much money you can borrow in principle. An estate agent is likely to take you more seriously if you have one before you go see a property.
Getting the right solicitor can mean an easy and speedy process in a house purchase, if you don’t have one, ask your mortgage broker, they will know who is reliable.
You have found a home, got a mortgage broker, got a mortgage in principle, got a solicitor and put your mortgage application in.
Now the lender will check the value of the property, and have check on you. They will then issue a mortgage offer with how much they are willing to lend you.