STEPS IN BUYING YOUR FIRST HOME

 

Step 1 - Getting started

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Before you start looking for a house, it is important to find out how much you can afford to borrow. Contact us for a Free Initial Consultation where we will also give you comprehensive advice and help you every step of the way.

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Step 2 - Agreement/Decision in Principle

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A Decision in Principle is an indication from your mortgage lender of how much they may be willing to lend you for your mortgage.

A Decision in Principle is sometimes also referred to as:

• an Agreement in Principle

• a Mortgage in Principle

• a Mortgage Promise

It’s not legally binding and the amount offered could change following a detailed assessment of your income and spending, credit rating and other factors.

A Decision in Principle may involve a soft credit search, but this does not affect your credit rating.

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Step 3 - Finding a home

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Viewing properties will take time, but to avoid unnecessary viewings, think about what your ideal first home will look like and where it will be. Be patient and don't rush into or feel pressured into making a decision. 

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Step 4 - Viewing a property

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It is important that you consider many things before putting in an offer. For instance, visit the place at different times (what might be a quiet area in the day, could turn out to be a noisy place at night), find out if you can from local people to find out what it is like living in the area.

Also, look for obvious signs of potential problems (damp, rotten woodwork, cracks in the walls) as you go around the property, even though details will be picked up in the survey and think about any resale issues. Never be afraid to ask questions if there is anything you are unsure about.

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Step 5 - Making an offer

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When you have found the right property, and are sure it is right for you put an offer in. Do not be afraid to offer below the asking price. It is important to make an offer 'subject to survey and contract' as this allows you to withdraw if you find out anything you have not discovered so far.

If the offer is accepted we will then guide you through the rest of the process.

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Step 6 - Full Mortgage application

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This is when we make the full application to the chosen lender and will involve the lender carrying out their full underwriting process. This includes checking various documents such as wage slips, accounts and bank statements. They will also then carry out a hard foot print credit search. 

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Step 7 - Survey

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You will need to get a valuation and survey carried out on the house you want to buy. A valuation will value the property and tell you how much it is worth, whilst a survey will tell you about the structure of the property and any faults that it may have. There are different types of valuation and surveys which we will explain in detail.

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Step 8 - Mortgage offer

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Once the lender is happy with the valuation, references and credit checks, you will receive a formal offer of mortgage in writing and a copy will be sent to your solicitor. This will contain all of the terms and conditions. Once signed and returned, your offer of finance is in place and you are ready to exchange contracts.

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Step 9 - Legal

 

When buying a property, you should instruct a solicitor to handle all the legal aspects relating to the transaction. It is important to pick a professional and reliable solicitor, as this will help speed up the process and avoid delays. Again this is something we can help and advise with if you choose.

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Step 10 - Draft contract

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This is written by the seller's solicitor and sent to your solicitor. Your solicitor will then check the contract and view the information the title deeds to ensure that the title to the property is satisfactory.

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Step 11 - Exchange of contracts

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The contract is signed by you and the seller, and the deposit you have put aside will be forwarded to the vendor's solicitors. The completion date is then set. At exchange of contracts you are responsible for insuring the property and therefore must ensure you arrange buildings insurance cover. Which we can arrange or help with if required.

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Step 12 - Completion

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This can be a few days to a few weeks after the exchange of contracts, depending on each party's personal requirements and circumstances. The remaining money owed is now transferred from your solicitor's account to the seller's solicitor account. On completion day, the legal ends are tied up and you collect the keys and move into your new home.