1st Time Buyer Mortgage Financing
Buying your first home is a big step and the personal and financial requirements to obtain your 1st time buyer mortgage can be very challenging. Here at Team Financial Services we will help you through the process, keeping you informed of progress at each and every step of the way. At the outset there are a few key things that you will need to consider; firstly will you qualify for a mortgage. If you are successful, we would then help you choose the right mortgage for you and make an application. There are also costs that will need paying for up-front, we will advise you of these along the way and it is a good idea that your savings cover these costs. Here is a brief guide to the overall process.
The amount of money you will need to make the purchase
It is likely that you will not have a lot of money for your first house so a mortgage is a large loan secured against the property you want to purchase. This is paid back over a set period of time, normally over 25 years in monthly repayments, so it is very important that you keep up the repayments for the period of time involved. At Team Financial Services we will help you calculate the amount of money you might be able to borrow as a 1st time buyer and if this goes well we will provide you with a Mortgage Promise. At this point you can then start your search for a property within the price range of your Mortgage Promise. A mortgage promise is always a good thing to get as a property seller will be sure of the fact that you have a Mortgage Promise and you will be in a position to negotiate!
House buying costs; What's involved:
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Legal fee - A conveyancer carries out all of the legal work involved in buying a property.
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Valuation fee - The lender arranges a mortgage valuation on the property to help them decide whether they’ll offer you a mortgage.
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Survey fee - For added peace of mind, a survey goes further – checking the building is sound and highlighting major problems.
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Disbursement fees - The conveyancer pays these to other third parties on your behalf, so he can obtain searches on the property.
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Stamp duty land tax - A government tax charged on land and property transactions in the UK. There are different rates for different types of property and values of transaction.
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Product fee - Lenders sometimes charge a product fee as part of a mortgage deal. It helps to keep the interest rate on the initial deal lower than it would have been if a fee had not been payable.
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Mortgage account fee - The fee is to cover the setting up, routine maintenance and closing down of the mortgage account.
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Higher Lending Charge - A Higher Lending Charge enables the mortgage lender to consider applications for loans which represent a high percentage of the value or purchase price of the property. Lending a higher percentage involves a greater risk for the mortgage lender. By collecting a Higher Lending Charge, mortgage lenders protect themselves against that risk. Halifax doesn't currently charge for this.
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Removal costs - You may need a removal firm or to hire a van to move your belongings to your new home. Getting family and friends to help instead is an alternative way to save money.
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Buildings insurance - Buildings insurance covers you financially against damage to the structure of your home. This includes permanent fixtures and fittings against loss or damage by an insurable peril such as fire or flood.
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Protection for you and your family - Critical Illness and/or Life Cover can pay out a lump sum if you die or become critically ill. Giving you peace of mind that if things don’t go as planned then you or your family won’t have to worry about the mortgage or losing your home.
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10% contingency - For peace of mind it's worth having additional savings to cover any unexpected costs.
Understanding mortgages can be difficult at first so don’t waste any time and talk to Team Financial Services now if you're considering a 1st time buyer mortgage!