Buying your first home is a daunting task but it can be exciting too and Alliance & Leicester are committed to helping you every step of the way. To make life easier for first time buyers, we have provided you with a comprehensive guide for first time buyers and a list of the key steps to getting your first mortgage.
Firstly, why not take a look at our comprehensive Guide to Buying Your First Home which gives you advice and tips on topics such as working out much you can borrow right through to moving in to your new home.
So what do I do now?
If you already know what you want why not check out our Mortgage Interest Rates If you want more information then continue reading to find out more about the key steps to applying for a mortgage. Whatever stage you are at we are committed to helping you every step of the way.
Step 1 - Work out how much you can afford
Work out your budget and be realistic, it’s important that you think about everything else you have to pay out every month, not just your mortgage – things like bills, council tax and loans. It soon adds up.
Use our Borrowing calculator to give you a better idea of how much you can afford to borrow.
Step 2 - Find a property
If you haven’t already, you need to find a property! Finding the right home for you can be a long process, so check out the areas you are thinking of living in and visit local estate agents and use the internet to find properties for sale.
From 10 September 2007, the law will require all homes with three or more bedrooms, put on the market in England & Wales to have a Home Information Pack. For buyers, the Home Information Pack provides important information about the properties they are considering buying.
When you have found the home you want – make an offer.
Step 3 - Apply for your mortgage
So, your offer has been accepted, now you need the mortgage to buy it. The sooner you apply for your mortgage the better.
Need help finding the mortgage for you? Read our Guide to mortgages or we can help you choose
Don’t forget, before you can exchange contracts, you need to have your mortgage in place with a formal offer from your lender.
Don’t forget insurance
Protect your investment - make sure your home is adequately insured. We can arrange insurance for your Buildings & Contents and sort out Life & Critical illness and Mortgage Payment Cover to protect you should you be unable to work due to accident, sickness or unemployment. Speak to your Mortgage Specialist for a quote.
What happens next?
When you have submitted your application we carry out various checks on you and your property. We will value your property to tell us how much it is worth for lending purposes. Some of our mortgages come with a FREE Basic Mortgage Valuation (Free valuation means the valuation fee is paid to us with your application and we will then refund this to you on mortgage completion) but you may prefer to have a more detailed survey called a Homebuyers Report.
Making it all happen - the conveyancing
Conveyancing is the legal process of transferring a property from one person to another, so you should find a solicitor or licensed conveyancer to do the work for you.
Alternatively, Alliance & Leicester offer a conveyancing referral service which is managed and provided by Golds Panel Management.
Golds can offer: -
• A solicitors' firm quickly and easily, selected by a name you can trust.
• A verbal indicative quote from an advisor straightaway, with a written quote to follow.
• You can check your case 24 hours a day, 7 days a week, via online tracking.
• No completion - no fee, if you don't move, you don't pay the legal fees.
While we are processing your mortgage application, your conveyancer or legal representative will be working away too. They will carry out searches on your property and surrounding area and will organise the contracts between you and the seller.
Exchange contracts
This is the point where both the buying and selling parties sign their copies of the contract, which are exchanged by their respective legal representatives. This is also when you pay your deposit to your legal representative. You are now legally bound to proceed with buying the property, and if you do pull out the seller can keep your deposit.
Completion
