That Property, Their Dream Home For 165, Has Been Sent, 500 Pounds To Test Them

Category: Finance, Mortgages.

There are just some things in life that are a recipe for disaster and going shopping without money in your pocket is one of them. So why, would we put, oh why ourselves through this same kind of masochistic torture when buying our dream home?

You are almost guaranteed to find something to buy that you absolutely fall in love with: Shoes, handbags, clothing, sportswear, gadgets and whatever, cars else manages to get your greed- glands working overtime! It s madness enough when buying" small ticket" items but a house( or flat) , are we really that crazy? We still do it. "FTB Excitement" takes over the very best of us. Well, yes. But it doesn t take much for the euphoria to disappear and to make way for something else. Unlike the seasoned, home buyer, more cynical, it understandably takes fewer viewings for a FTB to lay eyes on the place that is" the one for them" .

You see, the First- Time Buyer( FTB) is just so excited at the prospect of owning a little piece of land and home to call their own. They just know it. Nevertheless, you can still guess what the FTB has gone and done, can t you? They can see it, touch it, feel it, taste it. Oh yes, they ve committed mortal home- buying sin number one: "Thou shalt not go looking for a home until you have a Mortgage in Principle because you WILL fall in love with something. That property, their dream home for 165, has been sent, 500 Pounds to test them. GUARANTEED! " And that is when the" Curse of the First- Time Buyer" descends upon them!

Lenders have all stood around their moneypots and decreed not to lend them any more than 150, 000 Pounds. As bizarre as all of this sounds, there really is no need for any First- Time Buyer to put themselves through the pain and torment of finding a house or flat that they love without having the money in their pocket first. (Or as close as you can be to having the money that is. ) Have a mortgage agreed in principle before you start your house- finding journey. Oh yes. the curse has fallen upon another unsuspecting FTB! Get it in writing. Using one of those" How much can I borrow? " website forms is insufficient. Get a bank, building society or mortgage adviser to produce a Key Facts Illustratration( KFI) for you. Asking for just your annual salary and the property s value is literally scratching the surface.

And there s no need to worry: you re not making a full- blown application for a mortgage. You need something far stronger than that to bargain with. That s why it s called" Key Facts" because it s only the information that both you and the lender need to know at this stage in your relationship. This means that he must be given sufficient information, specific to his case, to be able to make that decision. " If you or someone you know are seriously in the marketplace for your first home, then go and get your illustration now. According to the FSA s" Mortgage Conduct of Business" book, this is how you can avoid the" FTB Curse" . (Well, they don t quite mention the curse but you know what we mean! ) "The principle[ of providing an Illustration] is that the customer should make an informed decision to apply for a regulated mortgage contract. They can be produced quickly enough by a reputable adviser.

You ve gone shopping with money in your pocket! More than anything else, you know you, though are in the strongest possible position to negotiate with the Seller.

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