First Buy

The 5-stage process of buying a home through the FirstBuy scheme

Stage 1

• Register your initial interest with your Local HomeBuy Agent. You can either do this directly with the HomeBuy Agent or through the actual home builder.
• Complete a FirstBuy application online or on a hard copy and submit the form to the Local HomeBuy Agent.
• Have an appointment with an Independent Financial Advisor (IFA) to gain an overall picture of your financial status. Your HomeBuy Agent may suggest some IFAs that are on their panel. You may be required by your HomeBuy Agents to attend a financial interview prior to giving final eligibility approval.

 

• You must make sure you have enough funds to:
  • pay a reservation fee if needed
  • the deposit upon exchange if needed
  • other associated fees on completion such as e.g. stamp duty, legal fees.

Stage 2

• The Local HomeBuy Agent will assess your eligibility.
• If you are eligible for the homebuy scheme, you will be sent an ‘Approval of Eligibility Letter’ by your HomeBuy Agent within 4working days of handing in a completed application. You also receive details of the level of mortgage you should be seeking
• The HomeBuy Agent will provide you with details of the applicable FirstBuy properties in your local area.

Stage 3

• Make an appointment with the sales teams at FirstBuy schemes.
• When you’ve located a property you are interested in, complete a ‘Property Information Form’ and return it to the HomeBuy Agent together with details of your solicitor along with a copy of the home builder’s completed reservation form.
• Pay the reservation fee, if needed,to the home builder. This is typically a maximum of £500. Do not pay this fee until you have been confirmed eligible by the HomeBuy Agent.

• Instruct a solicitor to act on your behalf and tell your IFA so that a full mortgage application can be submitted.

Stage 4

• The HomeBuy Agent will review the ‘Property Information Form’ making sure that the information same as the terms of your approval letter.
• If the information is consistent, the HomeBuy Agent will issue an ‘Authority to Proceed’ and will send instructions to both you and your solicitor. This pack will include the legal documents that will be explained to you by your solicitor.
• You will agree to exchange contracts within a specific time frame set by the home builder this usually between 21-28 days.
• Your solicitor will check to make sure your mortgage offer,price of the property and available funds are all consistent with the Authority to Proceed, and will make a request to the HomeBuy Agent permission to exchange contracts.
• The HomeBuy Agent will issue an approval to your solicitor and the contracts are exchanged.
• You will have paid a deposit by now if needed and you are now legally contracted to complete the purchase of the property by an agreed date.

Stage 5

• Upon completion, your mortgage lender provides its funds and the Homebuy Agency will make its funds available to the home builder. Once completion has taken place you legally own the property and can now move in.
• Your solicitor will now send confirmation of the sale to the HomeBuy Agent who will then in turn register your details with the Post Sales HomeBuy Agent.
• Two charges of equal ranking are placed on your new home by your solicitor in favour of the home builder and homebuy agency, this entitles them to a share of any future sale proceeds. The charges that are placed on your property will be equal to the percentage they contributed to the purchase price. You will need to pay back the percentage contributed if you sell your home or after 25 years, whichever comes first.
  
  How long does the home buying process take?
  The HomeBuy Agent will look to assess your eligibility within four working days of receiving a full completed application and any other necessary documents that may be required.
  After receiving confirmation of your eligibility it is then down to you how long it takes to find
  a suitable property and to submit a ‘Property Information Form’ to the HomeBuy Agent.
  The HomeBuy Agent’s ‘Authority to Proceed’ is valid for three months – This is the time limit for the exchange of contracts. Usually, the majority of home builders will be looking for buyers to exchange contracts within 30 days of making a property reservation.
  The responsibility for securing your mortgage and choosing a solicitor is ultimately yours, however your HomeBuy Agent and home builder should be able to recommend some options to you.