As a first time buyer you’ll have lots of questions about the house buying process. Not least what is needed and in what order. We’d like to offer some advice on that.

Affordability

The first thing to suggest is that you need to know you can afford what you are looking at. Not just that you can get the mortgage itself but that you have an idea what the monthly repayments will be and that they fit within your budget. You should see a mortgage advisor as your very first step for this information and they should also be able to provide you with a decision in principle (sometimes abbreviated to a DIP) which is confirmation from a bank or building society that based on the details provided, they will lend you the amount specified.

Some estate agents will require you to show this prior to allowing you to book viewings and most estate agents will ask you to provide a copy once you make an offer. Viewing houses without one is akin to looking around a clothes shop and finding a dress you like before realising at the till that you have forgotten your purse. You’d be upset I’m sure and it’d be a very nervous wait whilst you got organised as to whether it would still be there when you went back!

Some clients look at an online calculator and get an idea of their potential for borrowing but this is NOT confirmation from a lender that subject to further checks you can borrow the amount needed. Failure to be prepared can leave you open to losing the house of your dreams if you love something the same time as someone else who is in a better position to be taken seriously by the agent and in turn, the vendor. 

Due Diligence

Beyond that, at the point of offer, estate agents have to do due diligence on your identification for their anti money laundering compliance. They should ask you for ID information. Some agents charge for these checks - here at Houseclub we are committed to doing them free of charge, it’s all part of the service!