Purchasing your first home is an exciting journey, but it can also be a daunting experience without the right guidance.

In Cambridge, the process of securing a mortgage and buying a property involves several crucial steps. Our comprehensive 10-step mortgage & home buying guide for first time buyers in Cambridge is designed to provide you with the essential information and confidence you need to navigate the home-buying process.

From understanding your financial position to receiving the keys to your new home, we’ll cover everything you need to know to make your dream of homeownership a reality.

Step 1: Free Mortgage Appointment

The first step on your journey to homeownership in Cambridge is to speak to a qualified mortgage advisor. At Cambridgemoneyman, we offer a free mortgage appointment to help you understand your options and plan your next steps. During this initial meeting, our experienced advisors will assess your financial situation, discuss your home buying goals, and explain the different mortgage products available to you.

This personalised appointment allows you to ask any questions you might have and receive tailored advice based on your unique circumstances. Whether you’re curious about how much you can borrow, what your monthly repayments might look like, or what types of mortgages are best suited to your needs, our team of experts are here to help.

Getting in touch for your free mortgage appointment is easy. Simply visit our website or give us a call to get your journey started.

Step 2: Mortgage Affordability Assessment

Understanding how much you can afford to borrow is a critical step in the home buying process. A mortgage affordability assessment helps determine the amount you can realistically borrow and repay without straining your finances. Our advisors will conduct a thorough affordability assessment to provide you with a clear picture of your borrowing capacity.

During this assessment, we will review your income, expenses, credit history, and any existing debts. By evaluating these factors, we can offer an accurate estimate of how much you can borrow and what your monthly repayments might look like. This assessment not only helps you set a realistic budget but also ensures you are looking at properties within your financial reach.

Step 3: Obtaining an Agreement in Principle

Once you have a clear understanding of your mortgage affordability, the next step is to obtain an agreement in principle (AIP). An AIP, also known as a decision in principle, is a document from a lender stating how much they are willing to lend you based on an initial assessment of your financial situation.

The AIP is not a formal mortgage offer, but it is a valuable indication of your borrowing power. Having an AIP offers several advantages:

  • Increased Credibility: Sellers and estate agents are more likely to take your offers seriously if you have an AIP, as it shows you are a committed and credible buyer.
  • Faster Process: An AIP can speed up the mortgage application process once you find a property you wish to purchase, as much of the initial financial assessment has already been completed.
  • Clear Budget: Knowing the maximum amount you can borrow helps you focus your property search on homes within your price range, saving you time and effort.

Obtaining an agreement in principle in Cambridge is a straightforward process with the help of our experienced advisors. We can arrange an AIP for you within 24-hours of your free mortgage appointment.

Step 4: Finding the Right Solicitor 

Once you have an agreement in principle and are ready to start viewing properties in Cambridge, the next crucial step is finding the right solicitor to handle the legal aspects of your home purchase. A solicitor, also known as a conveyancer, plays a vital role in ensuring that the transfer of property ownership goes smoothly.

Your solicitor will handle critical tasks such as conducting property searches, preparing and reviewing contracts, and liaising with the seller’s solicitor. They will also manage the transfer of funds and ensure that the property’s title is correctly registered in your name.

Choosing the right solicitor can make a significant difference in your home buying experience, ensuring that the legal process is handled efficiently and effectively. As your mortgage broker in Cambridge, we can provide recommendations and help you find a solicitor who meets your needs, allowing you to proceed with confidence as you move closer to owning your new home.

Step 5: Making an Offer on a Property

After finding the perfect home in Cambridge, the next exciting step is making an offer on the property. This crucial stage requires careful consideration and strategic planning to increase your chances of securing the property at a price that fits your budget.

After finding your ideal home in Cambridge, it’s time to make an offer. Here’s how to do it effectively:

  • Research the Market: Look at similar properties in the area to understand fair pricing.
  • Consider Your Budget: Ensure your offer fits within your agreement in principle and leaves room for additional costs.
  • Make a Competitive Offer: In a competitive market, consider offering close to or above the asking price.
  • Highlight Your Position: Emphasise factors like having an AIP, being chain-free, or having a flexible moving date to strengthen your offer.
  • Submit in Writing: Send your offer through your estate agent, detailing the amount and any conditions.
  • Be Prepared to Negotiate: Be ready for counteroffers and know your maximum limit.

Making an informed and strategic offer increases your chances of securing your dream home. Our mortgage advisors in Cambridge are here to guide you through this exciting step!

Step 6: Submit Your Documents

Once your offer is accepted on a property in Cambridge, the next step is to submit all necessary documents to your mortgage lender and solicitor.

Your mortgage advisor in Cambridge will help you prepare your documents and submit them to the mortgage lender and solicitor on your behalf. The documents you will need to provide include:

For Your Mortgage Application:

  • Proof of Identity: Passport or driving licence.
  • Proof of Address: Recent utility bills or bank statements.
  • Proof of Income: Payslips, P60, and bank statements.
  • Self-Employed Proof: Tax returns and business accounts.
  • Credit Report: A recent credit report may be requested.

For Your Solicitor:

  • ID Verification: Proof of identity and address.
  • Source of Funds: Documentation showing deposit funds.
  • Property Information: Survey reports or building approvals.

As your mortgage broker in Cambridge, we will guide you through the process, ensuring you know which documents are needed and helping you gather and submit them promptly. This will help avoid delays and keep the process on track.

Step 7: Mortgage Application

With your documents submitted, the next crucial step is completing your mortgage application. This formal process involves submitting your financial information to the lender for approval and receiving a mortgage offer.

As your mortgage broker in Cambridge, we will manage the application process on your behalf, ensuring all necessary information is accurately presented to the lender. The lender will review all submitted documents, including proof of identity, address, income, and any additional information required.

A thorough credit check will be conducted to assess your creditworthiness and determine the loan amount. Additionally, the lender will arrange a property valuation to confirm its worth and ensure it meets their criteria.

Step 8: Property Valuation / Survey

Once your mortgage application is submitted, the next step is the property valuation and survey. The lender will arrange a valuation to confirm the property’s worth and ensure it meets their lending criteria.

Depending on the type of property you have made your offer on, we will advise what type of property survey you should take accordingly. Here are your options:

Mortgage Valuation

This is a basic inspection carried out by the lender to ensure the property is worth the amount you are borrowing. It is not a detailed survey and primarily serves the lender’s interests.

Homebuyer Report

This mid-level survey is suitable for most properties. It provides a detailed inspection of the property’s condition, highlighting any significant issues such as structural problems or necessary repairs.

Full Building Survey

Ideal for older or unusual properties, this comprehensive survey offers an in-depth analysis of the property’s structure and condition, identifying any current or potential issues.

These surveys provide valuable insights into the property’s condition, helping you make an informed decision. If significant problems are found, you can negotiate the price or request the seller to address any issues (if any) that the survey highlights before finalising the purchase.

This step is essential to avoid ‘down valuation’ issues, where the lender perceives the property’s value as lower than the purchase price.

Step 9: Mortgage Offer

Once the lender reviews your application and finds the true value of the property, they will decide whether to approve your mortgage. If approved, you will receive a formal mortgage offer outlining the terms and conditions

Review the mortgage offer carefully, ensuring you understand the terms and conditions. If everything is in order, accept the offer, and we can let the conveyancing solicitor that you’re ready to move to completion.

Step 10: Completion

The final step in your home buying journey is the completion of the purchase. Completion is when the property officially becomes yours, and you can finally move into your new home.

On the day of completion, several key activities occur. Your solicitor will transfer the purchase funds to the seller’s solicitor, which finalises the transaction. Once the funds are received, the seller’s solicitor will confirm the transaction’s completion, and you will receive the keys to your new home.

Prior to completion day, ensure that all necessary funds, including the mortgage amount and any additional fees, are available in your solicitor’s account. Your solicitor will provide a completion statement detailing the final amount due, including legal fees, stamp duty (something you may not encounter as a first time buyer in Cambridge), and other costs such a broker fees.

Date Last Edited: July 17, 2024