Guide to buying your new home.
One of the most significant decisions you will make so it's important to make the right decision as it will cost you a lot of money.
The key is to do your research and take all the advice and time you need.
Your first decision is - Should you be buying at all?
While home ownership has become a way of life in this country it's very different in Europe, in Germany the norm is to rent, have you considered renting a property?
Looking at the fees including stamp duty buying and selling a home is very expensive, if you may move in a few years is it right for you, does it make sense financially
Read our guide to affordability
Affordability is a very important factor when buying a home it's easy to go over budget, decide on a budget and stick to it, your mortgage advisor will help with this.
Mortgage lenders must work to guidelines which may dictate your budget, but lending to the max should not be your only consideration when setting your budget, have a look at our affordability guide for help.
Arranging finance.
Once you have decided that you do want to buy, speak to a financial adviser, look for one that is independent.
The financial adviser will guide you through the different mortgage products available, should you have repayment or interest only, is capped or fixed interest the right way to go.
Mortgage offers change all the time and predicting the future is guesswork, but some mortgage plans provide security, knowing what you will pay or knowing your payments are capped can be very attractive in a time of unpredictable interest rates.
You can arrange an agreement in principle from a lender this will help you a lot and potentially save you time, the agreement in principle comes from the mortgage lender and states that given the information you have provided they would be prepared to lend up to a set amount subject to the property you choose.
What type of mortgages are available?
Where to live and what type of property?
First, make a list of what you need from your new home how many bedrooms do you need are schools important, what about getting to work. Once you have your list speak to some estate agents they will guide you, check out resources such as Ofsted for schools, social media can be an excellent forum for advice from locals, then put the time in and arrange some viewings, and visit as many as you can that fit your criteria.
When to make an offer.
Once you have found your dream home, make sure you are in a position to make an offer, think about how much you would like to offer, does the property need any work if so, price the work out before you make an offer.
Making an offer can be a very surreal experience, it's not every day you will offer to buy something for £100,000’s, so it's easy to talk in telephone numbers but remember every pound is significant.
Appoint your solicitor.
Once the offer is accepted, you will need to exchange details, to save time we recommend you do some legwork on which solicitor you are going to appoint in advance, so you are ready when you have an offer accepted, request some quotes, the purchase price does not need to be exact at this stage.
Understanding Conveyancing quotes.
Appointing a solicitor.
Finance – the next stage.
Once you have your offer accepted you would need to speak to your mortgage broker to complete your application forms, I hope that you would have progressed your application as far as possible already, perhaps even obtaining an agreement in principle as this will save you time.
Your mortgage company will want a valuation, you should know your options here as you can request a more detailed inspection of the property
Guide to valuations.
Your deposit.
You will need to give your solicitors an amount of money to use as your deposit; this usually is 10% of your purchase price let your solicitor know how much you will be paying when and where the money is coming from.
Exchange of contracts.
When you exchange contracts both parties are legally committed to the transaction, you have to buy, and they have to sell, exchange of contracts should not happen unless everyone is satisfied that includes
- Receiving a mortgage offer
- All property negotiation concluded
- All legal aspects concluded
Remember if you are a buyer, and you fail to go ahead, you could lose your deposit.
At the point of exchange of contracts, you will have agreed on a completion date, at exchange you are responsible for buildings insurance.
Completion Date.
The day has arrived for you to take ownership of your new property, you will typically have access to the property at midday, this will usually be with the estate agent giving you the keys.
They will only give you the keys when they receive a call telling them that the money has been transferred.
Once you have moved in.
You most probably already know your legal bill and the stamp duty from you solicitors completion statement, it is possible to pay the stamp duty 30 days after completion, but usually, it's paid upon completion.
All you have to do now is sort out the utilities and carry out the million, and one plans you have.