First time buyers - hints & tips needed!

[JellyBeanFactory]

DD & her husband have saved enough for a deposit and with a little help from us, should now be able to buy their first home.

A property has come up in the right area and close to affordable price. They have rung agent and arranged viewing later in week but have already been bombarded with calls to set up solicitors, finance etc.

They don't yet have a mortgage agreed with anyone but have done their maths looking at various lenders and know what is affordable or not.

It's been over 20 years since DH or I bought a house and I guess the process may have changed? When we bought, we went around lots of agents/houses and then when we found the right house, went to the bank and said we'd like to buy "this one" and they agreed/disagreed. I believe you have to get a mortgage agreed first now? Is it easier these days? Do you have to go via the agent's preferred people? Is it still all as stressful as it always was?!?

All hints & tips welcome please!

They need a mortgage in principle first before they will be able to offer on a house. Also if the market is still as crazy where you are than where I am (north east) then they might need to be looking at houses which are marketed a bit cheaper than they can afford so that they can bid up if needed.

Thanks @Geneticsbunny That's a good point about leaving a bit in hand in case of bidding up. I've no idea what the buying/market is around here in the S/E, just see that prices are incredibly high and I hope they don't get too disappointed in what they can get.

I agree witha PP. They need a Mortgage in Principle, try a broker rather than the Estate Agent's advisor. London and Country get a good press on here, and I've used them in the past as have both DC. DCs agreed to speak to the EA in house broker, but they didn't go with them.
Also find a solicitor - ideally get recommendations from people who have bought recently. DC is currently dealing with a vendor who is using a solicitor who just doesn't respond to queries. I think they are almost ready to walk.
They also need to work out what they can afford and what they think the property is worth. DC is in a hot area, some properties go to best and final offer and other vendors expect purchasers to make their best offer to start with.
If looking at flats, make sure they ask about ground rent, length of lease, possible ground rent increases, service charges and who the Managing Agents are. Research the hell out of Managing Agents- there are some poor and expensive ones around .
Its also worth checking if a house is freehold or leasehold.

Do you have to go via the agent's preferred people?
They are the last people you would use. Why would you tell them all about your finances? It's not a clever negotiating position.

You need to ring-fence the amount you are giving her so that in the event of things going wrong in future, he won't walk away with half of your money. If he can't discuss this like an adult then you shouldn't hand the money over. You may think he wouldn't do that but have a look on the Relationship board and you will see loads of it. Protect your daughter.

Thanks for the responses, all taken on board. It's all very stressful still, the system doesn't seem to have improved in all these years. Glad it's their stress this time! I'm just keeping my distance with a helpful hint when needed.

And yes @bluedomino I absolutely agree, a deed of trust will be drawn up with the amount we're gifting.

We are first time buyers who just completed on our house in April. I wanted to say don't write off the in house solicitors and mortgage brokers. We had our own ones lined up, but compared these to the estate agent's peoples. When they could match our independent quotes like for like, we went with the in house advisers, and that ultimately swayed our bid, despite us not having the highest bid.
I know this isn't the usual advice but it worked for us. The solicitors in particular I would highly recommend. And this was buying in london.

They need a mortgage in principle and to have at least engaged a solicitor. They need to show proof of funds.

They are then all ready to go when they find somewhere.

It's also useful to have a surveyor lined up (or at least get recommendations).
Likewise if they want to do renovations to have a builder on hand to get an idea of costs.
To a lesser extent tell them not to dismiss a property because of decor or furnishings. The first can be changed and the latter won't be there when they move in.

Both mine have bought houses in the last couple of years, DD last September. Here was my advice, starting when she first started saving two years prior.

save regularly in a LISA this shows lenders you have good habits and aren’t reliant totally on parents gift
Avoid credit or short term debt if you can as this impacts lending such as car loans, pcp, credit card debt, overdrafts etc
Don’t forget you will have to disclose student loans too
when you have enough deposit get a MIP
have evidence of all your funds before viewing, copies of savings statements, bank statements, payslips, P60 and parents gifted contribution
engage a broker and listen to their advice
Start viewing!
try to build a rapport with the seller, some people on MN say this isn’t necessary, I dispute that. DD was picked as a buyer because her and the seller had lots in common including their employers.
when you find a property put in your offer and you have all paperwork ready. Include in the offer why you would be a good buyer - examples could be good deposit, FTB, still living with parents so flexible on moving dates, honest and trustworthy. DD said all of the above.
fingers crossed 🤞
if they get the house get the broker to submit the mortgage application which he/she should have ready to go anyway
engage a solicitor
the survey process may vary depending on the lender
sit back and stress for six months
cry
complete
🔑 🏡

@Cervinia Fabulous post - thanks. Glad it's worked out for yours!

I think mine has jumped the gun a bit. No mortgage in principle in place, not spoken to a broker or bank, just looked online and compared rates/terms etc. The property that has come up looks suitable but I think the excitement has got away with them! Phone call with finance person at estate agent tomorrow may burst a bubble or two.

My advice tonight on phone to her was don't get carried away, see what is said by agent, don't agree to anything! If they get a viewing, all well and good. Then start on the prep admin to get that in place before racing ahead.

Absolutely! Hope it works out for them.

what I forgot to add in the above is, for mine, they both had a couple of disappointments along the house buying journey which I tried to prepare them for, you may lose a couple of houses before you get the ONE, but I like to think that old saying “it wasn’t meant to be” softened the blow.

all the best.

When my husband died I had to sell our family home and downsize, and had never done it on my own before, so bought a book. The book also has this website for updates, I found it very useful.

www.helpmeimbuyingahouse.co.uk/

I also recommend joining the MSE forum on House Buying, lots of useful information.

Good luck to your DD, unfortunately the English system is broken, I wish we had a similar system to Scotland.