Buying your first home
Buying your first home? We have compiled a handy list of some of the jargon you can expect to hear throughout the home buying process.
Mortgages for first time home buyers
Buying your first home should be exciting and we know well enough here at Fosters Financial that getting your first mortgage may not be. That is why we are committed to making your experience simple, clear and hassle free.
To help get you started, we have compiled a first time buyers jargon buster. It includes some of the terminology you can expect to hear throughout the home buying process and what it means for you.
Mortgage Agreement in Principle
An agreement in principle is exactly what it says on the tin. In principle, the bank or mortgage lender have agreed to lend you a certain amount for your new home, based on your income and outgoings. The ‘in principal’ part means the bank can still change their mind. But, it will enable you to make an offer on your new home, so it can be taken off the market.
When the lender requests a valuation on the property you are looking to purchase, they are checking that the value of the house reflects the amount they are lending you. It is a good thing all round, yet worth putting in your budget, as it is something you will have to pay for.
A chain occurs when there other parties directly linked to your new home. If you are a first time buyer, you will be at the start of the chain. The current owners of the property will then continue the chain onto where they are moving and so on. If the property you are looking to buy is vacant, then you are chain free.
This is the part where you pop open the champagne and make a toast to officially having a place to call home. As you would expect, completion is the final step of completing your purchase!
If you are looking for some guidance with buying your first home, we are here to help. We are all about simple, no fuss mortgages, which start with a free, no obligation consultation with one of our independent mortgage advisors. So, get in touch to book yours today!