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Our 10 Step Mortgage & Home Buying Guide for First-Time Buyers

Below we have compiled a list of the 10 steps involved in the mortgage process for First-Time Buyers in Hull, so that you can be as prepared as possible heading into your oncoming mortgage journey. 

The 10 steps to the process of home buying and obtaining a mortgage are as follows;

First Step: Get in Touch for Your Free Mortgage Consultation 

So, you’ve decided to purchase a home and take out a mortgage as a First-Time Buyer in Hull. This is no doubt going to be one of the biggest financial decisions you ever make in your life, a thought that once realised, can be a little jarring when you have no experience in this field.

It’s at this point that a dedicated mortgage broker in Hull is able to step in and help you along the process. Our goal is to take the stress away from you and work hard to ensure you come out the other side with a mortgage and your first home, happy and with a favourable deal.

When you Get in Touch with us, we’ll book you in for a free initial mortgage consultation with an experienced mortgage advisor in Hull. Here we’ll take your details and look at what you’re planning to do, before starting your process.  

Second Step: Mortgage Affordability Assessment – How are you doing Financially? 

One of the things they’ll be able to run through in your free mortgage consultation is a Mortgage Affordability Assessment. This is where your dedicated mortgage advisor will run through your monthly income and regular expenditures (what you spend your money on), to determine whether or not you are able to afford the monthly repayments of the mortgage amount you’re looking to borrow.

The reason this is so important is that before putting you forward with a lender, we need to be confident that you can afford your repayments, as to avoid the risk of arrears and potential future repossession, something the lender will desperately try to avoid.

A Mortgage Affordability Assessment is something the lender will usually check themselves, so our initial check will help save the time of the lender, ourselves and more importantly you, from an application that may be declined due to failing on affordability. 

Third Step: Obtaining a Mortgage Agreement in Principle

The next step in your consultation will be to obtain a Mortgage Agreement in Principle. If you’ve been reading up on mortgages prior to receiving First-Time Buyer Mortgage Advice in Hull, you may have seen this under a few different, but similar names. These include ‘Decision in Principle’, ‘Mortgage in Principle’, as well as the abbreviations ‘DIP’ & ‘AIP’. There is no difference between these, other than the name.

The purpose of a Mortgage Agreement in Principle is to document that you have passed a lender’s initial credit scoring system, either via a hard credit search (which leaves a credit footprint) or a soft search (which does not leave a credit footprint).

This does not guarantee you will be accepted on a mortgage but is a necessary step en route to the final goal. Another perk is that having this document will show the seller of a property that you are in fact serious, possibly creating room for price negotiations.

Your AIP will usually last anywhere between 30-90 days, and can easily be renewed once expired. Our team can usually get one of these turned around for you within 24 hours of your initial appointment.

Fourth Step: Finding the Right Solicitor 

Following your Agreement in Principle, you will need to find yourself a Conveyancing Solicitor (also known simply as a Conveyancer) to help you with the legal proceedings of the homebuying process. The term Conveyancing is used to describe the transfer of legal ownership of property between parties, no matter if you’re the buyer or seller.

Your Conveyancing Solicitor will be able to handle contracts, give any legal advice should you require it, conduct local council/authority searches, deal with Land Registry and lastly transfer the funds you have acquired in order to pay for your property. As you can imagine, this is a vital role in your process, so you must make sure you can choose carefully.

It’s also important to note that Licensed Conveyancers are property specialists who can’t deal with complicated legal issues, whereas more general Solicitors offer a full range of services so can often seem more expensive. Whilst we do not offer these services ourselves in-house, we have a list of trusted companies that your dedicated Mortgage Advisor in Hull is able to refer you out to. 

Fifth Step: Making an Offer on a Property 

Now you’ve spoken to a Mortgage Broker in Hull, passed the Mortgage Affordability Assessment, obtained an Agreement in Principle and found yourself a Conveyancing Solicitor to handle the legal side of things. You’re halfway there now and your next course of action is to make an offer on the property you wish to purchase.

As mentioned earlier, with an Agreement in Principle in tow you will be in a much better place to negotiate on price. Make sure not to go too low as to offend the seller and create tensions, but don’t be afraid to ask for a lower price. Knowing you have an AIP with you, the seller will be more likely to sell to you than someone who is willing to pay the asking price but is unprepared.

The worst-case scenario is that the seller will say no, but it’s at that point you can work out a more reasonable offer for both of you or walk away and find yourself another property. Once you’ve had an offer accepted, it’s back to your mortgage advisor and onto the final stretch of your mortgage journey. 

Sixth Step: Submit Your Documents 

Now we’re back to the mortgage side of things and an important step, in submitting the required documents. As you would expect when such a large amount of money is involved, a mortgage lender will not just lend to anyone.

They will need you to provide various documentation to prove that you are the person you claim to be, the amount you earn from your job, where you live and how well you conduct your finances. If you’re obtaining a joint mortgage, they will require this documentation from both parties involved.

The types of documents you will need to submit, include; proof of ID, proof of address, the last 3 months’ payslips and latest P60 (employed), the last 3 years’ proof of earnings and Tax Year Overviews (self-employed in Hull), proof of any income such as state benefits or maintenance, proof of deposit and the last 90 days bank statements. 

Seventh Step: We’ll Progress Your Mortgage Application 

With your mortgage agreed in principle, and your offer accepted, we can now proceed to submit your full mortgage application. With everything ready and checked by your dedicated Mortgage Advisor in Hull & their team of Mortgage Administrators, we are ready to submit an application to the lender for a mortgage.

Your advisor will send off all the collected evidential documentation for this, and then it’s just a matter of waiting for them to respond with whether or not the application has been accepted or declined. Whilst there is no given time frame, our Mortgage Administration team will be able to chase the lender for an answer on this for you. 

Eighth Step: Property Valuation / Survey 

In-between your mortgage application and being offered a mortgage, the lender will require a valuation survey of your property to be undertaken. These are usually carried out by accredited companies nominated by the lender (someone who they trust).

The purpose of such a task is to understand the true value of the property, versus what you’ve agreed to pay for it. If you’re paying above its actual market value, the lender may be less willing to accept your offer, as in the event of arrears, they will most likely be out of pocket and unable to make back the full borrowed amount. This is usually known as a ‘Down Valuation’.

There are various types available when it comes to surveys, with each varying in price. Some will just want to check the property’s worth, whereas some will also provide information on any structural concerns as well as possible repairs that may be necessary for the future. Your Mortgage Advisor in Hull will be able to help you choose the right survey for you.  

Ninth Step: Receiving Your Mortgage Offer 

Now the moment you’ve been waiting for. Once your lender has checked over your case and assessed all the evidencing documentation, they will present you with your Mortgage Offer.

It’s at this point that our team of friendly Mortgage Advisors and Administrators in Hull, that you’ve gotten to know over the course of your process, will check over the offer for you to ensure everything is correct. Once your mortgage offer has been received, it’s then down to your Conveyancing Solicitor to take your purchase through to completion. 

Tenth Step: Completing The Process 

Congratulations, you’ve now officially gone from First-Time Buyer in Hull to a First-Time Homeowner in Hull. With any lingering stress now on the backburner, we hope you’re happy and ready to begin your new life, in your new home.

All you need to do is go get the keys and move in! We hope you enjoyed speaking with our team and received a fast & friendly Mortgage Advice service in Hull. If you have chosen a fixed-rate mortgage, at the end of your term, we will be in touch to help out once again with your Remortgage! 

Hullmoneyman.com & Hullmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

© 2021 Hullmoneyman

Hullmoneyman, 410 Wincolmlee, Hull, HU2 0QL.

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