First Time Buyers

In the first of our articles for first time buyers we take a look at some basic advice that can help at the beginning of the house buying process.

Looking back to when I first started down the road of buying my first property, I remember being fairly unaware of large aspects of the process. A number of friends and family had bought their own homes and were able to give some useful information and I felt that I knew the "basics" but I felt that there were some elements that I knew little about.

You'll be needing to deal with estate agents pretty early in the process. It's important to think about what is involved in dealing with estate agents as first time buyers.

We approached agents feeling that we were in a position of strength. After all, as first time buyers, we were not involved in a chain. As such, we felt that we were the sort of buyers that most sellers would be looking for. Estate agents in Winchester would surely be desperate for our business!

The reality was slightly different. Most agents wanted to know whether we already had a mortgage "agreed in principle". This was a concept that was news to us, although it did appear to be an advantage to have it in place. So what does it entail?

Getting a mortgage agreed in principle involves contacting a mortgage lender and discussing your likely borrowing requirements. You outline details of your current income and outgoings. The lender will then suggest whether they can provide the sort of money that you require in principle. They will not necessarily put this in writing.

You should note that many lenders will give this agreement in principle without requiring a credit check to be carried out. This is important. Despite having a mortgage agreed in principle with one lender, you may eventually decide to use an alternative lender and lots of checks on your credit file can be seen as a big negative by some finance companies.

Once you have a mortgage agreed in principle you can approach estate agents with more confidence. You'll also be able to avoid getting offered mortgages direct, as is the case with a number of agents.

First Time Buyers

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