Nothing prepared me for purchasing my first home. Who knew that there were so many steps involved and individuals to keep track of? I was caught off-guard by how, in those long-drawn-out months, it dominated my life and demanded all of my time and energy. There was an abundance of phone calls to undertake, decisions to be made and an entire glossary of property jargon to understand.
Buying a home is the biggest purchase that most of us will ever make in our lives. It is also one that we are the most unprepared for. Let’s take a look at the 7 steps involved in making this purchase, with the aim to make the process feel less overwhelming:
- AFFORDABILITY
Key people involved: Mortgage advisor
It sounds simple, but before you look to buy a property, it is sensible to determine exactly what you can afford and the total amount that you are permitted to borrow.
A great starting point is sourcing a mortgage advisor you can trust. A good mortgage advisor will give you unbiased and balanced advice. Based on your individual circumstances, a mortgage advisor can recommend a mortgage that is suitable and affordable for you. Be prepared for a deep dive into your finances. They will examine your credit rating, interest rates and your deposit amount. They will then offer you a ‘Mortgage in Principle’ which documents that the lender is prepared to grant you a mortgage.
When it comes to a property deposit, the more you have saved, the better your mortgage options will be. Generally speaking, most deposits are required to be 5% of the asking price. For example, if you plan to purchase a property for £400,000 your 5% deposit will need to be £20,000. A 20% deposit will be £80,000.
- DECIDE LOCATION AND RESEARCH
Key People Involved: Estate Agent
With a budget in mind, you can now look at suitable locations and view properties. It can feel a little overwhelming at first, but narrowing down your priorities can be helpful. Depending on your circumstances consider:
- Access to transport links for commuting and travel
- Quality of Local schools
- Local amenities
- Parking
- Quiet areas
Converse with estate agents to gain knowledge about your chosen local area and keep in touch. With new property transactions currently soaring, the housing market is continually updating so, regularly check in with estate agents for any new properties coming on to their books.
- OFFER ACCEPTED
Key People Involved: Surveyor & Estate Agent
Once you have found your perfect property you will place an offer through your estate agent, who acts as an intermediary with the seller. This is a particularly nail-biting point! Your offer may be rejected but do not let that hold you back, consider any bargaining tools in your favour, such as being chain free, to continue negotiating. After an offer is accepted everything from here on in is dependent upon three factors: your survey, mortgage agreement and legal work carried out by the solicitor.
A surveyor will carry out a full inspection of your property to check the condition of the property.
- MORTGAGE OFFER
Key People Involved: Mortgage advisor and Mortgage lender
After your offer has been accepted then the wheels will begin moving on to a legal offer. This is conducted by yourself, your mortgage advisor (if you have one) and your mortgage lender. Be prepared for plenty of form-filling!
- LEGALS
Key People: Solicitor, Surveyor & Tradespeople
This is the part of the process that can be the most time-consuming. Be prepared for delays, especially if there is a chain of homebuyers involved. Firstly, you will need to hire a solicitor or licenced conveyancer who will ensure that your purchase is conducted fairly. They will converse with the purchaser’s solicitor. It is sensible to contact a tradesperson at this point, as a good one will likely be in high demand. Compare at least three quotes; ask to see examples of their recent work and get your chosen quote in writing.
- EXCHANGE
Key People: Solicitor / Licenced Conveyancer
This is the point where the sale of your property is legally binding. Your solicitor or licenced conveyancer will instruct you to sign a contract to agree the sale, together with the solicitor from the seller’s side.
- COMPLETION
Key People: Solicitor / Licenced Conveyancer
Once your deposit is agreed your solicitor or licenced conveyancer will instruct your mortgage lender to pay the remaining fee to the seller. After this, the property is yours!
Have you recently started the process of buying a home? How you have found your journey and what did you feel was the hardest step?