First-Time Home Buyers in Cardiff: Follow These 10 Easy Steps

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As a dedicated and knowledgeable group of mortgage professionals in Cardiff, it is our top priority to keep our clients abreast of all the latest developments in the mortgage industry and ready to take on whatever challenges may lay ahead.

Below is a comprehensive outline of the 10 actions a first-time buyer in Cardiff must take to obtain a mortgage. We trust this puts you in a stronger position to qualify for a mortgage.

The home-buying and mortgage-approval procedure entails ten measures;

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Step one: Schedule a no-cost mortgage consultation by calling the number listed

You’ve given it a lot of thought, and you’ve chosen to take the plunge into homeownership by applying for a First-Time Buyer mortgage in Cardiff and buying your first home.

Without a shadow of a doubt, this is one of the most consequential choices you will ever make in terms of your financial future. If this is your first time dealing with something of this nature, the realization of this fact may cause you some worry.

This is where the assistance of a qualified mortgage advisor in Cardiff comes in handy. In order to make the mortgage process as easy as possible for our clients, we do everything in our power to make sure they emerge from it feeling confident and excited to move into their new house.

After you schedule a no-cost consultation with one of our open and honest mortgage advisers in Cardiff, we’ll ask you a few questions, review your financial situation, and get to work on your mortgage.

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Affordability Analysis of a Mortgage, the Next Step In terms of money, how are you holding up?

Your reliable mortgage consultant in Cardiff will take the time to walk you through a Mortgage Affordability Assessment during your no-cost consultation.

In most cases, this won’t take too much time. Here, your mortgage advisor will examine your monthly salary and regular expenditures (what you typically spend your money on) to determine if you are a good candidate for a mortgage loan.

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We need to be sure you can comfortably make your monthly payments before presenting you to a lender, so this step is vital. This will help you stay away from debt and possible seizure in the future. It’s in everyone’s best interest, including your mortgage lender’s, to prevent this.

Lenders typically also order a Mortgage Affordability Assessment, so our preliminary checks prevent the waste of everyone’s time (yours, ours, and the lender’s) if your application is ultimately denied due to insufficient funds.

In the third phase, you’ll get an agreement in principle for a mortgage

After this is finished, we will help you get a Mortgage Agreement in Principle, a very important paper, for free during your initial mortgage consultation.

You have probably heard of this before, albeit under various names, before enquiring about First-Time Buyer Mortgage Advice in Cardiff.

The phrases “Decision in Principle” and “Mortgage in Principle” are commonly abbreviated to “DIP” and “AIP,” respectively. Don’t stress over it; this is just a misunderstanding; they all refer to the same subject.

The reason why making sure you have a Mortgage Agreement in Principle is so important, is because it proves that you have passed a lenders primary credit scoring system, whether that be from a hard credit search (this leaves a footprint on your personal credit file) or performing a soft credit search (which typically does not leave a footprint on your personal credit file).

Even if you have this, it doesn’t guarantee that you’ll be approved for a mortgage, but it is a necessary stage in the process. Furthermore, it may be useful because it sends a strong message to the seller that you mean business when it comes to making a bid on the property.

In most cases, the length of an AIP will be between 30 and 90 days. If the term of your Agreement in Principle ends before it has been fully implemented, we can extend it quickly and painlessly on your behalf. Within 24 hours of your mortgage meeting, our seasoned team of mortgage advisors will have this for you.

The Fourth Step: Selecting an Attorney

Finding a Conveyancer to assist you with the legal aspects of purchasing a house is the next step after obtaining an Agreement in Principle. Conveyancing refers to the legal procedure whereby one party (typically the vendor) transfers legal title to another party (typically the purchaser).

Your conveyancing solicitor will assist you with contracts, give you any legal guidance you need, carry out any necessary searches with the relevant local council or authority, handle any necessary arrangements with the Land Registry, and, most importantly, facilitate the transfer of funds necessary to complete the purchase of the property.

Given the importance of this part of the mortgage procedure, it’s clear that you should exercise caution when making your selection.

Keep in mind that general Solicitors will be able to offer a wider range of services, despite the fact that they may appear to cost more, than Licensed Conveyancers, who are property experts and will not be able to deal with more complicated legal problems.

While we don’t provide these services ourselves, we are happy to recommend reputable businesses to you if you’d like.

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The Fifth Stage: Making an Offer on a House

You’ve reached out to a Mortgage Broker in Cardiff, taken and passed the Mortgage Affordability Assessment, secured an Agreement in Principle, and selected a suitable Conveyancing Solicitor to assist you with the legal aspects of the acquisition. The final step is to submit an offer, so get to it!

We have already discussed how having an Agreement in Principle on your side will give you significant leverage during any property price talks with the seller. Don’t be shy about asking for a discount, but don’t insult the vendor, either.

The seller will be more willing to take a slightly lower offer from you if they know you already have an AIP, rather than an offer from a buyer who is eager to pay the asking price but hasn’t even applied for a mortgage.

In this situation, the worst-case scenario is that the vendor rejects your offer. If this happens, you have the option of taking a step back and trying again with a more reasonable offer or of looking for a more reasonably priced property elsewhere.

Once your offer to buy has been accepted, you can resume working with your mortgage broker.

Document Submission (Step 6)

What comes next is a crucial stage in your journey. This is a significant milestone because it involves the submission of essential paperwork for the mortgage application process to proceed.

As is to be expected when dealing with such a large sum of money, a mortgage lender will be extremely selective in who they will give to, and we certainly can’t blame them. Lenders have often learned the hard way what happens when they relax their standards.

To get a mortgage loan, you’ll need to provide identification to the provider. They will also want to know how much money you are making right now, where you live, and how well you manage your money on a monthly basis.

If you’re applying for a mortgage with someone else, they’ll need to provide all the same paperwork that you will. This is to re-verify their personal information, such as their name, location, and income.

Lenders typically ask for identification, recent pay stubs and W2s, and a copy of your most recent P60 as evidence of income. (employed).

In addition to your deposit and three months’ worth of bank statements, they will also require proof of earnings and tax year overviews for the previous three years (if you are self-employed in Cardiff), proof of any supplementary revenue (such as state benefits or maintenance), and evidence of your employment status.

We will move forward with your mortgage application, the seventh step

If your offer has been accepted and your mortgage has been approved in principle, we can assist you in sending your mortgage application to the mortgage lender.

Your Mortgage Advisor in Cardiff and their reliable group of Mortgage Administrators have double-checked everything, and now we can submit your application to the lender and wait for (hopefully) favorable approval.

Your mortgage consultant in Cardiff will submit the paperwork they have gathered to the lending institution, and then you can relax and wait for the result.

Even though there is a deadline by which you must hear back from the provider, our Mortgage Administration team will keep at it until we know for sure whether or not you have been approved for a mortgage.

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Step Eight: Survey and/or Appraisal of the Property

Before extending a mortgage offer, a lender will want to see the results of a valuation assessment of the property you plan to buy with your application. Lenders usually have preapproved service providers handle such tasks. (someone that they trust to be fair and honest).

The goal is to determine whether or not the price you and the seller have decided upon for the property is fair. Lenders are less likely to accept your offer if they think it exceeds the fair market value of the property.

This is due to the fact that if you fall behind on payments and the property is repossessed, the lender will lose money on the sale because they will get back less than they loaned to you. This is referred to as a “Down Valuation” in the banking industry.

The cost of a property survey can vary widely depending on the sort of survey you need.

Some will only consider the property’s market worth, while others will also take note of any structural issues you may want to investigate or future repairs that may be necessary. To make the best choice, consult with a reliable Mortgage Advisor in Cardiff.

Finally, you’ll receive a mortgage offer, the ninth step

You must now confront the very thing for which you have prepared yourself. The mortgage company has reviewed your file and proof and made a decision based on that. Presenting you with the official mortgage deal is next on the agenda.

Our quick and helpful Mortgage Advisors and Administrators in Cardiff, with whom you have communicated frequently and, no doubt, become quite familiar over the course of your mortgage adventure, will examine this offer on your behalf to make sure it is accurate and in accordance with your wishes.

Your Conveyancing Solicitor will see your purchase through to completion once you have received an official mortgage offer.

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The Finale, or Tenth Step

Congratulations, you’ve made it from being a nervous, inexperienced first-time buyer in Cardiff to an assured, seasoned, and mortgage-ready buyer in just a few short months!

We trust that you now feel more at ease and that any concerns or worries you previously had have been put to bed. Sincerely, I pray that you are overjoyed with your new home and eager to begin your new journey.

Now all you have to do is get the keys and start unloading your stuff. Our staff at Cardiff Mortgage Advice hopes you had a positive experience working with us.

If you’ve decided to move forward with a fixed-rate mortgage, we’ll be in touch again at the end of your fixed term to help you with a remortgage or any other real estate goals you may have!

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