Step-by-step of buying a property

Buying a property, especially your first home can be both exciting and slightly daunting, but by taking it one step at a time, you’ll realise it’s not as intimidating as it appears.

Step 1: find out what you can afford

There’s nothing wrong with looking at a six-bedroom house with a pool, walk-in wardrobe, and ensuite bathrooms. However, before envisioning pool parties, you need to determine what you can afford.

It used to be a general rule of thumb that you could borrow about four times your gross income. However, lenders now use a stress testing method to assess your entire financial situation. For an accurate idea of your affordability, it may be worth speaking with a mortgage adviser who can calculate how much you can borrow and what you need to save.

Step 2: save, save, save!

It’s a challenging step, but you’ll need to become savvier and more disciplined with your spending to build up a substantial deposit to buy a property.

The typical minimum deposit required is 5% of the total house price, so for a £200,000 house, you’d need to save £10,000. However, it’s advisable to save as much as possible since a larger deposit can provide access to better mortgage rates.

Step 3: start your search

When searching for your ideal home, it’s essential to consider which factors are most important to you. For instance, do you prioritise the property itself, the location, or having three bedrooms?

Online estate agents’ websites make it easier than ever to browse within your price range and preferred location, allowing you to save your favourites into your account. However, it’s important to keep an open mind and be ready to compromise on some of your criteria, as properties can appear quite different in person compared to their online listings.

Step 4: Agreement in Principle

Once you’ve found a few properties you like, it’s important to obtain your Agreement in Principle (also known as Decision in Principle) before starting viewings. Buying a property is a lengthy process, and it can be disheartening to miss out on one you love because you weren’t able to make an offer quickly enough.

Step 5: viewings

We hate to break it to you, but while viewings may seem like the most exciting part of buying a property, they can actually be one of the toughest stages.

It’s easy to get carried away by how beautifully a home is decorated and staged, rather than focusing on practicalities. When viewing properties, try to remember what truly matters, such as the amount of space and the location.

Step 6: submit your offer

Once you’ve found your dream home, it’s time to make an offer. Call the estate agent to express your interest and state how much you’re willing to pay. Don’t hesitate to negotiate a lower price. It’s better to start with a lower offer and gradually increase it, while ensuring you stay within your budget.

Step 7: apply for your mortgage

If the seller accepts your offer, the estate agent will send you a confirmation letter, and you can formally apply for your mortgage.

To make the mortgage process hassle-free or if you have concerns about your circumstances affecting your application approval, feel free to contact us, and we’ll be more than happy to assist you.

Step 8: surveys and conveyancing

After applying for your mortgage and having your offer accepted by the seller, the process involving solicitors, valuations, and conveyancing can begin.

Your mortgage lender will appoint a surveyor to assess the property’s value. However, you will need to find your own solicitor or conveyancer, either through a recommendation or by searching online. Your solicitor will serve as an intermediary between you, your lender, and the seller, so ensure they have sufficient experience to facilitate a smooth process.

Additionally, you must take out buildings insurance after the lender’s surveyor has evaluated the property, as all lenders require this before completing your mortgage.

Step 9: contracts and insurance

By this stage, you, your solicitors, your lender, and the seller should be satisfied with the contract, price, and survey results, and ready to sign.

Next, you’ll need to think about the necessary insurances, such as contents insurance or possibly life insurance, to protect yourself against unexpected events.

Step 10: you’re ready to move!

It’s finally time to pack up and move into your new property, the home you now officially own – congratulations on achieving this milestone!

If you have any more questions about the buying a property and the journey, please feel free to reach out to us on 01634 968111. Our team of mortgage advisers are here to provide support and guidance throughout the entire process.