Buying a home is a huge financial commitment and can be daunting – especially if you’re a first-time buyer. These tips will help with knowing more about the purchase of a new home, including the process, key steps and what fees to expect.
1. Find a property you can afford
Before you start house-hunting, it’s a good idea to work out your budget to figure out what to spend on buying a house or a flat and your monthly mortgage payments. Be sure to consider how you will cope if your financial situation changes or interest rates rise, and be careful not to overstretch yourself. Lenders will be checking your credit score when considering your application. So, before you apply for a mortgage, check your credit report for any errors and to get an idea of your score.
2. Make an offer
Once you have found a home you want to buy, the next step is to make an offer, usually through an estate agent.
3. Arrange a solicitor and surveyor
The solicitor will handle the legal work around the property. The surveyor will survey the property to check for problems, which might affect the cost of the home. Your solicitor will tell you how much you can expect to pay. Your solicitor will submit searches to the local council to check for any planning or local issues that might affect the property’s value.
4. Finalise the offer and mortgage
Once the survey is complete, you might want to go back and renegotiate the price of your new home. Your survey might uncover problems with the property that will be expensive to fix. You can use this information to ask for a reduction in price.
However, if everything has gone according to plan, contact your lender or mortgage adviser to proceed. After you have received a binding mortgage offer, your mortgage lender must give you at least seven days to think about whether or not this is the right mortgage for you. You can use this time to compare this offer with other mortgages.
5. Exchange contracts
If there are no problems or delays, you should receive the contract to sign and complete the sale. Before signing the contract, go through it very carefully with your solicitor to check that all the details are correct. Make sure you are happy with what the sellers have agreed to leave in the property and that all your queries have been answered. Once you have exchanged contracts, you will need buildings insurance in place to cover the structure of the property.
6. Completion and final steps
The remaining money owed to buy the property is now transferred from your solicitor’s account to the seller’s solicitor’s account. Your solicitor will register the sale with the Land Registry for properties in England and Wales.
We offer a full range of estate agent services for sellers and buyers in the UK. For expert knowledge on buying or selling your net home, contact us today.