Buying your first home is an exciting milestone in your life, but it can also be an overwhelming one. It is common to be confused when trying to navigate the many steps required when buying your first property. This Davisons Law blog provides you with an easy-to-understand step-by-step guide for the house buying process to help put your mind at ease.
Step 1 – Speak to a mortgage advisor
The first step of buying a property is speaking to a mortgage advisor. This is important as they will discuss your income and outgoings to establish the budget you are working with. Once you know this, they can advise how much you can borrow, the pricing of your deposit and can also agree an Agreement in Principle for you. An Agreement in Principle is a statement from the lender indicating how much they would be willing to lend to you. Whilst not a guaranteed offer, it gives sellers and estate agents confidence, but lets you know what you are working with money-wise.
Step 2Â – Save for a Deposit
Most mortgage lenders would require a deposit of at least 5-10% of the property’s value when lending. The larger a deposit is, the better your mortgage rate may be. Therefore, it is important to start saving for your deposit as soon as you can. You could use a Lifetime ISA or LISA (if you are eligible) to boost your savings, as the government can contribute if you are eligible (various terms do apply).
Step 3Â – Find your property
Once you know the budget you are working with, you can start looking for your property. You can look online and even register with local estate agents to find out about any suitable properties as soon as they are listed on their website. It is important to take time with this to ensure you find the right home that fits your needs and budget.
Step 4 – Make an offer
Once you have found the right property for you, you will need to make an offer for it through the estate agent. You can negotiate if you think necessary and can put in an offer higher or lower than the asking price if appropriate. If your offer for the property is accepted, it will be listed as under offer or sold subject to contract.
Step 5 – Best and Final Offers
With the property market so competitive, it is common for sellers to ask for a Best and Final offer from the interested buyers. This requires you to submit your highest offer, the details of your financial position and how quickly you can proceed. The seller will then choose the best offer (which isn’t always the highest), by considering the positions and ability of each party to proceed. We are of the opinion that. First-time buyers are always in a strong position for this, as they are not in a property chain.
Step 6 – Instruct a Conveyancer
A conveyancing solicitor will handle all the legal aspects of buying your property, as well as conducting property searches, contracts and liaising with the seller’s solicitors. Davisons Law will be able to help guide you every step of the way when buying your first property.
Step 7 – Getting a mortgage
Once your offer is accepted, you can officially apply for a mortgage offer. Your lender will conduct a property valuation to confirm its value, as well as an affordability check and, if approved, will provide you with a formal mortgage offer. Some mortgage lenders have different timescales in this respect.
Step 8 – Arrange property Surveys and Searches
It is important to get a survey on the property to identify any potential issues that need addressing with the property; you need to arrange this with the estate agent (or lender if they offer this) if you decide not to source your own. A survey is different to house searches; your solicitor/ conveyancer carries out searches such as local authority searches, which check any planning issues, for example, as well as environmental and water/drainage searches.
Step 9 – Exchange Contracts
After all the legal checks are completed (which include satisfactory replies to enquiries, your mortgage offer and all search results), you and the seller will exchange contracts. You will have to pay your deposit, and then the sale becomes legally binding.
Step 10 – Completing and moving in
Once the exchange of contracts is complete, the property will complete. Your solicitor/conveyancer will transfer the remaining funds required to the seller’s solicitor, and you will be able to collect your keys for the property from the estate agent. You will then be able to move into your new home!
How Davisons Law Can Help
At Davisons Law, we understand buying your first home is a big step, and that is why we look to offer you the correct support, guidance, and understanding to put your mind at ease during what can be a stressful period. If you are looking to purchase your first property, get in touch today on 0808 23923 421 and a member of our team will be in touch.
