First-Time Buyers – Your FAQs Answered
Buying your first home can seem scary as you enter a world of unknowns and with such huge volumes of tips, advice and dos and don’ts online it can’t be difficult to know where to start. We asked our Instagram followers to take part in a live Q&A so we could answer the questions real first-time buyers wanted to know the answers to.
And here’s what you asked..
Where do I start?
Speak to us, a free initial consultation with one of our experienced team will give you friendly, helpful and professional advice on everything from budget and getting a mortgage to moving in.
We can arrange independent mortgage advice from whole of market brokers, this means they have access to more mortgage products than you could access by contacting lenders yourself. They will be able to access your personal circumstances to find the best mortgage deal for you.
Our Solicitors will review Home Reports for properties you are interested in and look at what similar properties have sold for to ensure they are giving you all the information you require to make an informed decision when offering for a property. Not all Solicitors will do this.
Should I be worried about 2s/3s in a Home Report?
The HR is a useful guide but doesn’t go in to significant detail. It is always worth investigating category 2s and 3s but they shouldn’t be an impediment to buying the property and should be reflected in the value. Some category 2s are just commensurate with age of the property.
It is possible to seek estimates for works that may be required and sometimes the Seller may already have done this. Often these estimates are added to the end of the Home Report or can be provided by the agent upon request.
Speak to us for specific and detailed advice.
How much over the asking price do I need to pay?
There is no exact science to this! There are lots of variables from the length of time it’s been on the market to the value in the home report, comparable sales in the area and the level of interest in it and of course, what it is worth to you.
You should also consider that a mortgage lender will online lend up to the value of the property so anything you wish to pay above the Home Report Value must be cash you have saved up as your deposit.
Speak to us for free, friendly advice.
Do you only deal with properties in Edinburgh?
No, we can buy anywhere in Scotland. We have a lot of experience & expertise throughout Edinburgh, The Lothians & Fife but have often bought properties for clients further afield too.
What purchase options are there for 1st time buyers now the first home fund has closed?
There are various options including:
Shared Ownership, which involves you buying a proportion of a property (normally 25%, 50% or 75%) while the remaining share is owned by a housing association to which you pay an occupancy charge.
Open Market Shared Equity Scheme, which allows you to pay for the largest share (normally 60%-90%) of a property and for the Scottish Government to hold the remaining share under a shared equity agreement. With this scheme, you will hold the complete title for the property with the Government holding a standard security over the property which will be repaid upon sale of the property.
95% Government backed mortgages, which are helping buyers obtain mortgage products with only 5% deposit.
Speak to us to get the best advice based on your personal circumstances.
Do you need a Solicitor to register a note of interest or can I do that on my own?
We would always advise putting in a formal Note of Interest via a Solicitor as that way you will get helpful, professional advice on what to do next. We do not charge for submitting Notes of Interest or offers.
How much over Home Report Value should I be offering?
Similar answer to our answer about asking prices – there is no exact science to this as there are lots of variables so it is always worth speaking to a Deans Solicitor who will give you honest advice and research past sales for you to make an informed decision on what to offer.
Is there anything we should look out for at viewings as 1st time buyers?
Read the Home Report before your viewing in case it raises any questions you might have or indicates areas in the property that might need work that you might want to look at closely when viewing. Check out planning applications in the neighborhood, the transport links and local amenities. It is often worth viewing a couple of times at different times of the day or of the week. Don’t be afraid to ask questions!
Do you still need a 10% deposit or can you buy first home with a 5% deposit?
95% mortgages are available! We have in-house, whole of market, independent Mortgage Advisors who can give you advice tailored to your personal circumstances. Contact us to find out more.
*your house is at risk if you do not keep up repayments on a mortgage or other loan secured on it
Where should I sign up to keep up to date with new properties coming on the market?
Join our Potential Buyers Database to be one of the first to hear about new properties we bring to the market! Call 0131 667 1900 or email mail@deansproperties.co.uk to give us your search criteria. We would also recommend registering for email alerts on ESPC, Rightmove, Zoopla & OnTheMarket.com.
Should I still view properties virtually first?
In person viewings are permitted but it is recommended that you view virtually in the first instance which is why all our new listings have a video option from the excellent Squarefoot Media. This is a useful way to make a shortlist and ask questions about the properties you are interested in before committing to a safe and socially distanced in-person viewing.
Check out our virtual viewings on our YouTube Channel here.
What is a closing date?
Whilst you don’t have to wait for a closing date to be set to put an offer in on a property, a closing date is an opportunity for all interested buyers to put forward their best offer for the Seller’s consideration. A property will usually have 2 or more formal notes of interest before a closing date is set. Once a closing date has been set, the sellers will not look at offers until that date and time.
How do I work out what I can afford?
Speak to one of our Independent Mortgage Advisors who will be able to help work out your affordability and the amount a lender will let you borrow. Our Mortgage Advisors can work out how much you can borrow BUT you should consider the lifestyle you want to have as well as the property you want to have it in. There’s no point saddling yourself with a huge mortgage if it means you don’t have spare cash for furniture, redecoration, maintenance and things like nights out and holidays!
How do I make an offer?
You need a Solicitor to submit a formal offer on your behalf. Our Solicitors will review the Home Report of the property you are interested in and will help advise on the terms and price of the offer you wish to submit. They will need to know your full financial situation, ideally with you mortgage agreed in principle and details of where your deposit is coming from. A clear idea of timescale for when you want to move is also important.
If you have any more questions about buying your first home, our friendly team of expert Property Solicitors are on hand with all help, support and advice you need to secure your first home. Get in touch to arrange a free, no obligation appointment to find out how we can help get you moving. Call 0131 667 1900 or email mail@deansproperties.co.uk