So you have your heart set on a property in Hull and you are ready to put an offer down on your dream home… but where do you get started?
Placing an offer on a property is not as easy as it seems, you have to get lots of things prepared before you can do anything. Firstly, you’ll have to make sure that the seller or estate agent knows about all of your personal and financial circumstances. At this point during the process, you are putting yourself in the best position possible in order to get your offer accepted. Before you put in your offer for the property, the seller or estate agent needs to know everything so that you are covered if anything pops up in the future.
Getting a mortgage agreement in principle (also known as an AIP) is an essential part of the home buying process. It is usually a written statement of approval from a lender/building society to say that they are willing to lend you a certain amount for a mortgage. This is why you need one of these to make an offer on a property, the seller/estate agent needs to know that you can actually get a mortgage on the house.
After the outbreak of COVID-19 in 2020, an agreement in principle was even needed at the house viewing stage. This was to put a limit on the number of people taking up viewing who haven’t even been accepted for a mortgage as of yet. As a Mortgage Broker in Hull, this is another reason why we always recommend that you get in front of other buyers and get an agreement in principle nice and early.
In the majority of cases, you will never compete with a cash buyer. Lenders love it when someone can provide you with the cash there and then. However, to increase your odds against cash buyers and even other potential buyers, you should get an agreement in principle arranged. If you have one at the ready, you are showing your lender that you are well-prepared and know what you are doing. It also puts you ahead of other home buyers who haven’t got one in place.
This is another benefit to approaching a Mortgage Broker in Hull, like us. As part of our service, we aim to turn around an agreement in principle within 24-hours of your application! Depending on your situation, it could be within a much shorter timeframe!
Buying a property is a negotiation process. If your initial offer is rejected, you will be asked whether you want to increase it. If you really think that the property is worth more and you want it, you may have to bump up your initial offer. Don’t be shocked if your initial offer is declined, many First Time Buyers in Hull have had this happen to them and yet it doesn’t stop them from securing the property further down the line.
If your second offer is also declined, you may have to pay the asking price. This is where doing research comes into play. Before making an offer on a property, you should always research what similar properties in the local area are selling for on Rightmove and Zoopla. This may give you a vague idea as to how much your initial offer should be.
Another thing to look out for is how long the property has been on the market. If it’s just been listed, the seller may want the asking price, whereas, if it’s been on for a while, the seller may be lenient or there could be something wrong with the property. If you come across houses that have gone for less than they’re worth, don’t worry as there will be a reason for it. It could’ve been repossessed, sold to a tenant at a discounted price or an inter-family sale.
For further advice on this specialist subject, feel free to get in touch with our excellent Mortgage Advisors in Hull. If you need any help on making an offer on a property as a First Time Buyer in Hull or just want an expert Mortgage Advisor in Hull by your side to help you secure that property and get you a great mortgage deal, you should know that we are here to offer a helping hand.
We have Advisors in Hull available 7 days a week, so if you ever have any mortgage questions, you know who to call. Receive a free mortgage consultation today with your expert Mortgage Broker in Hull.