Understanding the mortgage process: A step-by-step guide for first-time buyers

Buying your first home is exciting, but it can also feel a little overwhelming. Knowing what to expect helps you plan ahead and make confident decisions. Here’s our step-by-step guide to buying your first home, so you can move forward with clarity, connection and the confidence of knowing we’re with you at every step. 

This guide is designed for first-time buyers purchasing their own home. If you’re considering buy-to-let or an investment property, we can guide you through that process separately. 

Step 1: Understanding your finances 

Before you start house-hunting, it helps to get a clear picture of what’s realistic. Every lender is different, but all will look at your income, outgoings and credit history when deciding how much you can borrow. 

At Cohesion, we can check lender criteria across the market, help you understand your credit score and guide you through what this means for your borrowing potential. 

• Knowing your borrowing range helps you focus your search and avoid stress later. 

• Your deposit and related fees will influence the options available, but even with a smaller deposit there are still plenty of routes to explore. 

• It’s also worth planning for other costs such as solicitor fees, surveys, removals and Stamp Duty. 

• Keep useful documents handy such as proof of income (payslips, P60s, or tax returns if self-employed), bank statements and details of any loans or other commitments. These make it easier to find the right lender quickly. 

Step 2: Get an Agreement in Principle (AIP) 

We’ll help you  apply for an Agreement in Principle (AIP), sometimes called a Decision in Principle (DIP). It’s an early indication from a lender of what they might be able to lend based on your financial position. It’s not a formal mortgage offer, but it helps you understand your borrowing range. 

Having an AIP  shows estate agents and sellers that you’re ready to proceed when you find the right property. 

Step 3: Find your first home 

Now for the exciting part – finding your new home. With your borrowing range in mind, you can start your search with confidence. 

Take your time viewing properties. Visit at different times of day, get a feel for the area, and think about any work the property might need, whether that’s a fresh coat of paint or more substantial improvements. 

When you’re ready to make an offer, contact the estate agent. They’ll pass your offer to the seller and guide you through any negotiation. Once the price is agreed, your offer will be marked ‘subject to contract,’ meaning legal checks still need to be completed. 

Step 4: Instruct a solicitor or conveyancer 

Your solicitor or conveyancer handles the legal side of buying your home. They’ll: 

• Confirm property details with the Land Registry 

• Review contracts and mortgage conditions 

• Carry out local authority searches and highlight any issues such as planning restrictions or access rights 

They will also explain anything that might affect the property or your ownership and advise whether further enquiries are needed. Throughout, they’ll liaise with the seller’s solicitor to keep the purchase moving smoothly. 

Step 5: Submit the full mortgage application 

Once you’ve found a property and chosen your preferred mortgage structure, your Financial Planner will prepare and submit your full application. 

They’ll ensure the application meets the lender’s criteria and includes all required documents to reduce the risk of delay or rejection. 

They should also talk about how to protect your ability to meet repayments, for example, through protection plans that could cover illness, accident or death. These conversations ensure your new home remains secure, whatever life brings. 

Step 6: Surveys 

After submitting your application, the lender will arrange a basic valuation to confirm the property’s value and suitability for lending. 

For added peace of mind, you may wish to commission your own independent survey. 

• A Level 2 Homebuyer Report suits most standard homes, checking for damp, roof issues and general maintenance needs. 

• A Level 3 Building Survey (or Full Structural Survey) is recommended for older or unusual properties or those needing renovation. 

While surveys add to upfront costs, they can help you renegotiate the purchase price if significant issues are found, often saving much more in the long run. 

Step 7: Receive your mortgage offer 

Once the lender has completed all checks including the valuation and approved the mortgage, you’ll receive the formal mortgage offer. It’s important that you review it carefully as it sets out your loan amount, term, rate and any conditions. 

Your Financial Planner will walk you through the details and make sure it matches what you applied for. 

Step 8: Exchanging contracts 

When both sides are happy, contracts are signed and your deposit is paid. At this stage, the sale becomes legally binding, and both buyer and seller are committed to completing. 

You can now agree your completion date. 

If we’ve arranged mortgage protection for you, we’ll  help arrange and confirm the policies are in place so you’re covered from the moment you’ve exchanged contracts. 

Step 9: Completion day 

On completion day, your solicitor will transfer the mortgage funds to the seller’s solicitor. Once they confirm receipt, you can collect your keys from the estate agent. 

Congratulations – you’ve officially bought your first home! 

Step 10: Ongoing Support from Cohesion 

Our relationship doesn’t end once the keys are in your hand. We’ll stay in touch to make sure everything runs smoothly, answer any questions and keep you updated on any changes that might affect your mortgage. 

When your initial term is nearing its end, review your options so you always have the right solution for your circumstances and peace of mind about what comes next. 

Need more help? 

Every mortgage journey is different, and it’s completely normal to have questions along the way. 

You’ll find clear answers to common queries, from how long the process takes to what happens if your application is delayed, in our Mortgage FAQs (links to internal web page) section of the Knowledge Hub. 

Bringing it all together 

Buying your first home should be exciting, not stressful. With the right guidance, it can be a clear, supported journey from start to finish. 

If you’d like expert guidance on your first mortgage or want to understand your options, we’re here to help you every step of the way. Connect with us here.

Disclosures

Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing debts against your home. Not all mortgage contracts are regulated by the Financial Conduct Authority.