First Time Buyers - What's covered in the first mortgage meeting?
I recently had an initial telephone enquiry with a first-time buyer, the usual points were covered, a quick summary of their position and an introduction from me including the services I provide. Everything was looking good, so the next step was to arrange a time to meet so I could provide a recommendation and complete a fact find in readiness to obtain a ‘Mortgage agreement in principle’
What was said next threw me a little, ‘Can you give us a couple of days as we just need to think about what questions we need to ask’
I understand the buying process can be incredibly daunting for first time buyers, but rest assured, a good mortgage adviser will cover everything you need to know about the mortgage application and buying process, so there shouldn’t be anything left unanswered! However, I understand that even the first appointment is a big step, so I’ve put together a complete list of everything that is covered during the first mortgage appointment to give first-time buyers a head start, as well as set a minimum expectation of what information you should have by the time you leave your mortgage advisers office…
- During our initial contact (usually over the telephone) I will be finding out who you are, what your aims/goals are, a basic run down of your financial circumstances (job, salary etc), credit commitments, credit history, and needs and preferences for your mortgage product and budget. Collating all this information will help me to make a full recommendation about which mortgage lender and product I think is best for you. My recommendation isn’t made solely on the cheapest interest rates available, but also considering any fees the lender charges, any cashback attached to the product, as well as lenders criteria, making sure you tick all the lenders boxes before an application is made. If you have not yet found a property, this could be something which takes further consideration later down the line (as the property also needs to meet certain criteria)
At this point I will send over some indicative terms (usually by email), to give you an idea of what your mortgage is likely to look like, as well as a full list of any documents required to submit the full mortgage application.
- Our next meeting is the full recommendation meeting – Before I can provide you with my full recommendation, I will need to complete the remainder of my fact find, this is going to cover things like:
o 3 years’ address history.
o Details of your employer / self-employment.
o Details of all your credit commitments as they show on your credit file, such as the up to date balance, credit limit and account numbers.
o Details of any adverse credit, the reason for this and when it was satisfied.
o A monthly budget planner.
o The details of the property you wish to purchase, who your estate agents and solicitors are.
- Presenting the recommendation – I will present my full recommendation and run through the mortgage illustration with you (if this meeting is happening over the phone it will be emailed before-hand) I will explain what the interest rate is, any fees included in the product, the term and monthly repayments, any incentives such as cashback, free solicitors, free valuations, any early repayment charges and how long these apply for, as well as your options with this product in the future (such as porting the mortgage to another property)
I will explain the reasons why I have recommended this product / lender.
- The house-buying process – We will then talk about the next steps:
o What happens once you’ve chosen and instructed a solicitor.
o The different types of survey options available, and all the information you need to decide whether you would like to instruct your own independent property survey in addition to the basic ‘mortgage only’ valuation which the lender will instruct.
o Any other fees you need to budget for (for example solicitors fees…)
o An idea of how long the process is likely to take from start to finish.
o If your mortgage is subject to a help to buy / shared ownership application, I will run through the process of applying for an equity loan / working with the housing association to get approval for a shared ownership property.
Once your offer has been accepted and the full mortgage application has been submitted, I will provide updates as soon as anything progresses with the mortgage lender. Once the full application has been submitted this will be followed up with a suitability report which confirms our discussions during the fact-finding meeting, the details of the product recommended and the reasons why I have recommended this product and lender.
I hope this gives an insight in to what a first mortgage meeting and next steps looks like to anyone considering buying a property for the first time.
For more information contact Hope Mortgage Solutions on 0117 914 7471 or firstname.lastname@example.org