You have decided to buy a home – but what next? We have made a step by step guide so you can dive right in and find out information most relevant to you.
Asses Your Budget:
Asses what your budget is for your new home and how much you can afford for your monthly mortgage payments, along with other expenses.
Find Out How Much You Can Borrow
Check your credit score, because if you have a weak track record, you will find it harder to borrow more money. Next find out how much you can afford to put down as a deposit.
Be aware of additional costs as solicitor fees, estate agent fees and stamp duty which is one of the biggest costs incurred at the end of the process.
Decide What Your Criteria Is
Decide on the number of bedrooms, bathrooms, garden and parking and whether you wish to buy a house or flat. Look at transport links, schools, shops and crime rates.
Begin Your Property Search
If you find property that you like, arrange to view it. Whilst visiting properties, bear in mind it will be your biggest financial outlay, so don’t be tempted straight away if you have some anxieties.
Make An Offer
Buyers tend to make an offer below the asking price and subsequently negotiate if it is not accepted. Once your offer is accepted, the property will be taken off the market.
Getting Together A Mortgage
Your broker or lender will sort out your mortgage application according to your outgoings and income. You may have to pay a booking fee to reserve the mortgage you want, typically costing between £99-250.
A survey will be carried out and will typically cost between £150-1,500. Once the survey comes back to you, read it in detail to see if there are problems with the property.
If there are substantial problems with the property such as subsidence or the need to refurbish, contact the seller to renegotiate. If rejected, you may have to pull out. Beware you will lose any money invested in the process to this update.
Your solicitor will ask you to sign the contract as a way of committing to the purchase and to pay deposit which is 5% of the asking price. Beware of being gazumped by someone who offers a higher offer.
You have 4 weeks normally to complete the sale including the Telegraphic Transfer Fee, costing £25-50, mortgage account fee costing £100-300, solicitor’s bill £500-1500 and 30 days to pay stamp duty.
You Can Move In
Once completion has taken place, you can begin making arrangement to move in and or plan building works. This is an exciting but hectic time, so be sure to get it right and make your house a home!