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Buying a house is seen as one of the most stressful things a person goes through, it can be lengthy, but once you understand the basic structure, your home-buying experience will be easier.
Here is a step by step guide around the house buying process.
Build A Deposit
Before you can start shopping in the housing market you need to have funds available to put down as a deposit for your home. Within the current market, there is an expectation that you will be able to put down a deposit of at least 5% of the overall house value. However, it is worth noting that the more of a deposit you can put down and the lower percentage of mortgage required the lower the interest rates will be that are available to you.
Know-How Much You Can Get On Mortgage
You need to understand how much a mortgage provider will be willing to lend you. The amount itself will vary from provider to provider and will be determined by multiple factors such as how many people in the house, your earnings and outgoings to name a few. It is then the combination of the deposit and mortgage amount that determine the value of houses that you will be able to afford and consider.
Get An Agreement In Principle
Once you are in a position to start house hunting you will want to get an agreement in principle (AIP). This is a certificate that confirmed based on an eligibility check and credit search that the mortgage provider is in principle willing to lend the mortgaged fund. This can be required by the estate agents in order to take the property off the market once an offer is accepted.
Make An Offer
Now you have found the ideal property you need to call the estate agents to make a formal offer to purchase. This offer is then passed to the vendor and if agreed you will then continue with the buying process.
Apply For The Mortgage
You already know in principle you meet the mortgage requirements, however, now you have found a property you need to formally apply to the provider. As part of their process, they will verify the income details discussed and check the property offers suitable security for the mortgage.
Choose A Conveyancer
To complete a house purchase legal checks and requirements are needed. You will need to get conveyancing quotes in order to appoint a firm to carry out these checks and liaise with the land registry when the sale completes so the property deeds are in your name.
Find Insurance
Mortgage companies will have terms and conditions that you have building insurance in place from the time of contracts being exchanged. This provides protection and covers the building if it is damaged and ensures it will be repaired or rebuilt if needed. However, along with property insurance, you may also want to consider protection insurance for yourself.
Once all of these steps have completed you will exchange contracts and then arrange a date for the move to take place.
