Buying a property is a large financial commitment and it’s important that you take the time to understand each stage of the process. We walk through some of the most important steps so you know what to expect.
Work out your finances
The first step before embarking on a house purchase is to work out your finances so you know exactly what you can afford. You will need to consider your income, outgoings, existing debts, credit score and how much of a deposit you will need. The larger your deposit, the better your chances of securing a mortgage with a good interest rate. At a minimum, you will need between 5-10% of the purchase price as well as meeting other eligibility criteria. You should allow another 10% to cover legal, survey and removal fees.
Getting a mortgage in principle agreement
Make an appointment with the lender of your choice to discuss a mortgage. Alternatively, speak to an independent mortgage advisor who can advise you on different types of mortgage including which will best suit your situation. Maximum lending figures are between 4 ½ and 5 times your salary but this will vary among different lenders. Getting a mortgage agreement in principle puts you in a better position when you are searching for a property as some estate agents won’t book viewings without one. It also helps you to focus your search on the price range that your mortgage will allow.
Find a conveyancer
When you have found the property you wish to buy and have had your offer accepted by the seller, you will need to hire a conveyancer to do all the legal work of the purchase. You can hire a licensed conveyancer or a solicitor for this. Both do the same job in the conveyancing process, the only difference is the regulatory bodies which oversee them. Some licensed conveyancers offer a no sale, no fee option.
Arrange a survey
You should now arrange a house survey. Although your lender will carry out a valuation survey on the property to establish its worth, it’s in your best interests to have your own survey done. The point is to check the condition of the property and bring to light any current or potential problems.
The main types of survey are a full structural survey, a homebuyer survey or a condition survey. The first will go into significant detail including an assessment of the structure of the building, the second assesses all areas that are reasonably accessible while the third is a concise survey typically reserved for newer properties. Failing to carry out a survey can have serious financial repercussions if you discover significant problems within the property after you complete.
Find a reputable moving company
When you have a provisional moving date, you can begin looking for a reputable removals company. Unless you are moving into your first home, it’s likely you will have accumulated a lot of possessions and trying to move yourself is an additional anxiety that you could do without. While it may seem like an extra expense, professional moving companies can take a lot of the stress out of moving home as well as most of the physical labour. Contact several removal companies and get a quote as well as a breakdown of their services from each one.
Complete the purchase
When all the paperwork has been done by your conveyancer and the balance of the money has been paid to the seller’s solicitor, the property is officially yours. However, there is still payment of stamp duty (if applicable) and the bill from your conveyancer to settle. Your conveyancer will pay the stamp duty from your funds that they still hold and let the Land Registry know about the change of ownership. If costs have been overestimated by your conveyancer or solicitor you will receive a refund. Now you can really relax and enjoy your new home!
