Wondering What is The House Buying Process? We Got You Back!!
Buying a house is a difficult and time consuming process. Still, if you understand the basics, you’ll be less likely to be surprised along the way, and your home-buying experience will be more pleasant.
If you are a first time home buyer and you’ve never bought a home in England or Wales before, you could be unfamiliar with the procedure. Therefore, we’ve created a guide that will lead you through each step of the process!
The Procedure of First Time Home Buyers:
#1 – Save Money For a Mortgage Deposit:
In most cases, you’ll be required to pay a deposit similar to around 5% of the home you want to buy or more. You can save more money if you can save as much as this amount. A bigger down payment means you won’t need to borrow as much, leading to a lower mortgage or maybe lowering interest rates.
#2 – Consider Cost to Move:
There are other costs involved like removal fees, broker fees, legal expenses, and more when buying a new property in England and Wales. As you may expect, these costs mount up quickly. So, before you decide to buy a new house in London, do some research. You’ll also have a good sense of how much money you’ll need to save and borrow to buy a house.
You can hire a mortgage broker for better decisions, and Mountview Financial Solutions is a well known mortgage broker in the UK. From saving for a down payment to making an offer and moving in, our step-by-step guide to purchasing a home explains everything first time buyers need to know.
#3 – Figure Out How Much You Can Borrow:
The amount of your deposit, your income, and your credit score will all help determine your mortgage. That is why, as we mentioned in the previous step, you should figure out all of the fees involved with your property purchase. The mortgage may also cover these. When deciding how much you may borrow, don’t be afraid to ask about the various types of mortgages available from your mortgage broker.
Also Read: Will I Ever Be Able To Afford a House As a First Time Buyer?
#4 – Research the Place:
When looking for a new place to live, it’s a great idea to research the area. It is particularly important if you’ve never lived or visited the area before. Remember to look into the area schools, public transportation options, flood zones, and more. Also, constantly keep an eye on the local crime rate.
#5 – Start Looking For a New Home:
It’s time to take your search to the next level once you’ve identified an area where you’d like to live. That’s the time to start looking for a home to buy. Mortgage brokers provide help in getting Agreement in Principle, and some Estate Agents even offer a service that allows you to sign up for daily updates. These will send you updates when new properties come on the market.
#6 – Arrange a Viewing:
It’s time to schedule a viewing after you’ve found a property you’d want to see. Nowadays, you get the option of visiting the property in person or viewing it online. In reality, viewing homes is recommended. The reason for this is because you’ll get a greater sense of the property, and be able to find issues that aren’t immediately apparent.
Also Read: What You Need to Do for Buying a Second Home
#7 – Make an Offer:
Making an offer can be scary; however, keep in mind that you are not required to take the asking price. You have the option of making a lower offer than the asking price. Keep in mind, however, if others see the home, they may offer more than the asking price. So, keep to your budget and don’t let anyone or anything convince you.
#8 – The Sale is Agreed:
When you and the seller have reached a deal, the seller’s agent will go over the transaction details with you and the buyer. You’ll get a Memorandum of Sale at this stage, confirming that the sale has been agreed to.
Also Read: Mortgage Broker in London
#9 – Hire a Solicitor:
As a first time home buyer buying a house is a complicated legal process that can be complicated to understand. Thus it’s best to find a Conveyancer who can help you. Look for a solicitor who offers a no-sale, no-fee conveyancing service with a fixed price guarantee (excluding disbursements).
Final Steps:
- The final steps are to complete the mortgage application, get a mortgage valuation (where the lender verifies that the property is worth the amount you’re borrowing), and start the conveyancing procedure. Following this, the seller’s solicitor will receive the title deeds from the seller and draught a contract, which will be submitted to your solicitor.
- Your solicitor will then confirm the property’s details and undertake a search of Land Registry and Local Authority records. Now is the time to get building and contents insurance rates.
- Following that, you’ll be notified when it’s time to sign the contract, and moving dates will be set. The exchange of contracts is the following phase, and this is where you are legally compelled to make the transaction. Finally, your solicitor will pay the seller’s solicitor the balance of the purchase money. The estate agent will be notified once the funds have been received, and they will send the keys to you! You now own your new home!
So I hope you get the answer to your problem. Many of us who want to buy a new house in the UK but have financial concerns? Don’t worry, go to Mountview Financial Solutions for the correct and helpful financial advice.
