A Step-By-Step Guide To Buying A House
Buying a house can be difficult, no matter whether you’re a first-time buyer or have gone through it before.
There are lots of hoops to jump through and many issues can crop up, issues that could potentially derail the sale, so it can be helpful to know what the house-buying process looks like from start to finish to help you keep on track.
With this in mind, here’s a step-by-step guide to buying a house that can serve as a checklist against what you need to do to cross that finish line and exchange contracts as quickly and as efficiently as possible.
1. Save a deposit
While there are now a few zero deposit mortgages available, you typically need a deposit of at least five per cent to buy a house with a mortgage, but if you can save more you’ll be able to take advantage of cheaper deals.
2. Work out how much you can borrow
It’s useful to know how much you’ll likely be able to borrow and what your prospective monthly mortgage repayments will be. Seeking expert mortgage advice can be beneficial in this regard, as they’ll have in-depth and up-to-date knowledge of the market.
Don’t forget about hidden costs like stamp duty, relocation and any redecorating or building work you’ll need to do on the new house when calculating costs.
3. Get an agreement in principle
You will need a mortgage agreement in principle from a lender before you can start househunting in earnest. Estate agents may not even show you around houses without this in place and you won’t be able to put in an offer unless you’ve got this arranged.
4. Go househunting!
Let the fun begin! Now’s the time to start looking for your next new home – but don’t rush the process as it has to be the right choice. Think about what your must-have features are, what location you’re looking for, what kind of property you want… and then go to see as many as you can, refining your choices as you go.
5. Make an offer!
Once you’ve found your new home, you can put an offer in. Decide on the maximum amount you’re willing to pay and then go in lower than this initially so you have room to negotiate.
6. Apply for your mortgage
Once you have an offer accepted on a house, you can finally apply for your mortgage. If you’re using a mortgage broker, just give them a call and ask them to start your full mortgage application.
7. Instruct a conveyancing solicitor
Now’s the time to find a conveyancer to manage the legalities of house purchases on your behalf. It can be helpful to read reviews and testimonials of past clients if you’re unsure as to who to go for.
8. Arrange house surveys
It’s advisable to have a survey of the house you’re buying carried out to ensure that there are no nasty surprises when you move in. There are three different levels of survey, so simply choose the one you judge to be most appropriate.
9. Exchange contracts!
Once you’ve exchanged contracts with your house seller, you are legally committed to purchasing the property and they’re legally committed to sell it to you.
10. Agree a completion day
Once you’ve agreed on a completion day, you can start looking ahead to moving, booking a removals company as soon as you can (if necessary) and packing everything up in your old house ready to go.
11. Complete & move in!
Upon completion, you’ll pay for the property and collect the keys from the estate agent. You’re now able to move in, do any necessary building work and so on.
12. Pay stamp duty
Your solicitor will be in touch with details of all their costs, stamp duty and the purchase price of the property. Typically, the stamp duty will be paid on your behalf and change of ownership registered with the Land Registry.