A new meaning to the word 'stress'. (How to buy a house)

Member Name: xxsaxonyxx

Product:	How to buy a house
Date:	01/02/06 (606 review reads)
Rating:

Advantages: You get a house at the end of it!

Disadvantages: Money money money.

When i bought my first house i wish so much i had some advice before hand. I was only 20 and just found out i was pregnant so we had to get a move on before i popped. It was all so confusing and i knew nothing about anything to do with buying a house so here's a few tips on what to do to get started on buying your first home.

Firstly start saving! Believe it on not we managed to buy our first home with only £1000 saved for the deposit but i stongly recommend saving more than this as we needed the help of a few credit cards once we were in to cover some bills and new decoration. Unfortunatly i cant tell you how much is a good amount, it really depends on how big a mortgage you want. I will recommend having at least £1000 to hand after you have moved for unforseen things that you didnt know about when you bought the house. Stained carpets, broken windows handles, damp, replastering. These small things mount up and nothing is worse than having to put a hold on your decorating because you have no money to fix a small patch of damp.

While your saving go to your nearest Mortgage info center or in my case we went to a financial advisor in Goodfellows. These people do not charge you for the help they offer, they get payed from the mortgage company who give you the mortgage.
I could not have bought any of my houses without one of these people. They will look after you from start to finish.

First they will assess your financial position, see how much you can comfortably afford each month. They will go through in detail bank statements, pay slips, credit card debts, everything. They will check your credit history so make sure your up to date with any debt, if possible pay them off before this as the less you pay out on credit cards and loans each month the more you can get for your mortgage. They will also go though all the diffent mortgages with you, fixed, capped, tracker..etc and thankfully they will be able to explain what each one means and what would best suit your needs. They will also calculate the percentage mortgage required, many companies now offer 100% mortgages so you dont need a deposit. Most however will be 95% or there abouts this means that if you buy a £100000 house they will only give you £95000 you need to pay the extra £5000 deposit.

She/he will then fill out your application and get you to sign, this will be sent away and if its successful you will get an agreement in princible. This means as long as all the info given is true and correct and your circumstances dont change you have the money. My advice is apply for as much as you can you dont need to use the full amount if you see a cheaper house, this is much easier than asking for say £50000 and seeing a house for £54000 you would then need to mess about with more forms.

So you have you AIP, now its time to look for a house. Try not to house hunt before you sort out your mortgage. Its too frustrating because you will see one you want and not have the funds in time.

Pick out a few houses you like and arrange a visit. If your on a smaller budget then try and see past horrible decoration and old person style looks, paint will do wonders and its fun making it your own. Ill decorated houses will be cheaper but you have to be prepared to do some work.

Once you have decided you want one go back to your financial advisor and speak to her/him if its offers over they will be able to advise you on how much the client might want for the property. My financial advisor really went all out for us, checking other houses in the area on what they were selling for and even peeking on notes to see what the client had stated they wanted. I think its diffent in Scotland than England, its all very cloak and dagger up here regarding offers over. If the seller agrees to sell once you offer thats it, they are not really permitted to change their mind.

Fixed price. Great and simple but move fast! If its a fixed price dont bother with your financial advisor, go straight to the lawyer that is dealing with your house move. He will speak to the seller straight away to get a verbal agreement.

So you have put your offer in and its been accepted what now?

Dont stop saving! Start gathering things for your home over the coming months before you move in. Toaster, kettle, bedding. Aim to buy a few things every week so that you dont have to shell out a fortune when you've moved. Remember random things like spare light bulbs, cork screw, potato peeler.

When we moved the second time we got some boxes and bought paint, wallpaper, accessories and put them in a labled box. So everything we needed to decorate out kitchen was all in one box, paint rollers and brushes,right down to some candles, pictures, wall fitting and even new chrome switches and plug sockets. It meant that instead of raking through hundreds of boxes trying to find a paint brush and ample trips to B&Q we only needed to take one box into the kitchen and get it done before the rest needed unpacking. We did this for all the rooms and it was great and really quick too. We even bought our carpets months before and arranged for them to be delivered and fitted the day after we moved.

There isnt much else to do while your waiting to move, nearer the time you will have yet more paper work to read over and sign and at last you will be able to pick your keys up.

Hope this helps some first time buyers, it is really stressful but as long as you have a financial advisor that you trust and is working well with you (dont be afraid to get a diffent one if you feel your is not doing the job well) then everything will fall into place.

Good luck!!

Summary: You'll be glad when its all over!