THE BUYING PROCESS
Our helpful guide takes you step by step through the process of buying a house in England and Wales. Our guide to buying a home consists of 12 sections that you can follow in order to gain a comprehensive understanding of the entire process, from financing to moving into your new house.
1
GET YOUR FINANCE IN PLACE
Before you begin your property search, it is advisable to arrange your finances and, if necessary, obtain a mortgage agreed in principle (a letter from a mortgage lender stating how much they would be willing to lend). You can do this by speaking to a bank or building society, although you might find it beneficial to seek assistance from an independent mortgage broker who can guide you through the complex mortgage process.
2
IDENTIFYING LOCATION AND REQUIREMENTS
Before you begin searching it is advisable to arrange your finances and, if required, have a mortgage agreed in principle (a letter from a mortgage lender setting out how much they would be willing to lend). You can do this by speaking to a bank or building society, although you might be better off seeking help from an independent mortgage broker who can guide you through the complex mortgage maze
3
SEARCHING FOR A PROPERTY AND ARRANGE VIEWINGS
Before you begin searching it is advisable to arrange your finances and, if required, have a mortgage agreed in principle (a letter from a mortgage lender setting out how much they would be willing to lend). You can do this by speaking to a bank or building society, although you might be better off seeking help from an independent mortgage broker who can guide you through the complex mortgage maze
4
DO SOME RESEARCH BEFORE PUTTING AN OFFER
Once you’ve found a property you like, try to arrange a second or third viewing. Ideally, bring along a friend or family member who can provide an unbiased opinion. During the viewing, conduct a bit of detective work. Turn all the taps and lights on and off, inquire about the heating system, check the condition of the boiler, lift rugs, inspect behind pictures, and thoroughly check for any signs of damp
5
MAKE AN OFFER
Once you find your perfect property, you can make an offer online or through your agent. Whether you decide to submit a low offer depends on several factors, including whether you believe the property is overpriced, the level of competition, and the extent to which your budget allows. It is ultimately the seller’s decision whether to accept the offer you’ve submitted through the estate agent.
6
INSTRUCT A SOLICITOR
When buying a property, there are several legal documents and procedures that must be completed. To ensure a smooth and timely transaction, it’s essential to have a dependable property solicitor.
7
OFFER ACCEPTED
Once the seller’s estate agent has the details of both parties’ solicitors, they will confirm that the sale is agreed, subject to contract. You will then receive a Memorandum of Sale to confirm this.
8
SORT YOUR MORTGAGE APPLICATION
After your offer has been accepted, you must formally apply for a mortgage. You can do this either directly with the lender or through your broker. Regardless of the route you choose, be prepared for paperwork and for your bank statements to be meticulously reviewed to ensure that you can afford the loan you are seeking.
9
COMMISSION A SURVEY
After you have officially secured your mortgage, it’s time to consider commissioning a survey. While there’s no official requirement to have a survey conducted, it’s highly advisable because it assesses the property’s condition and identifies any significant issues before you exchange contracts.
10
EXCHANGE CONTRACTS
Once all the searches are complete, the legal work is finalized, and the mortgage is in place, it’s time to proceed with the exchange. The exchange is the point at which both the buyer and the seller are legally bound to complete the transaction based on the agreed terms. At this stage, you will also provide the deposit to the solicitor, typically amounting to 10% of the purchase price
11
AGREE MOVING DATES AND REMOVAL
After your offer has been accepted, you must formally apply for a mortgage. You can do this either directly with the lender or through your broker. Regardless of the route you choose, be prepared for paperwork and for your bank statements to be meticulously reviewed to ensure that you can afford the loan you are seeking.
12
COMPLETION
Completion is the stage where the remaining funds, typically around 90%, are transferred from your solicitor to the seller’s solicitor’s account. Additionally, you’ll need to settle any outstanding fees, such as stamp duty (based on the property’s price) and legal costs. Once the money is received, the seller’s solicitor will notify the estate agent, and the keys will be released. At this point, the property officially becomes yours
