Buying a new home is both an exciting and overwhelming prospect. Before you start viewing properties, it’s always good to brush up on your knowledge of the process. You need to consider fees, deposits, paperwork, the legal process and much more. Moving house is a wonderful experience – but there is a lot more to it than you might realise at first glance.
You need to consider these steps when buying a property for the first time.
Apply for a mortgage
If you’re a cash buyer, you don’t need to worry about applying for a mortgage. However, most people do need a mortgage, and you need to decide on a budget to estimate how much you can borrow. You need to put an offer down the house, and once it’s gone through, you can begin discussing your mortgage with the lender. They will carry out an independent valuation of the property and provide you with an official offer. You will have to pay for the valuation. Read the terms and conditions carefully and ask your solicitor to go over the agreement with you.
Please bear in mind that if the amount of money needed to be borrowed is over 75 or 80% of the property’s value – your lender may make it a condition for you to take out extra insurance on the amount. You will need to pay a single premium to your lender, also known as a higher lending charge.
Arrange an independent survey
The valuation is not a survey. Hire a specialist to look at the property to make sure you know the ins and outs of the home. Arrange an independent survey to examine the structure of the property and the condition it is. While this is an added cost, it can save you a lot of time and money later down the line. It’s best to discover any problems with the property as soon as possible so you can adapt your timeline and budget accordingly. For example, if there is a problem with mould and dampness in the house, you may need to do some structural renovations before moving in.
Find someone to do the legal work
You can use a solicitor or a licensed conveyancer to help you with the legal side of things of different properties, including freehold, buy-to-let and much more. If you want to become a landlord and rent out the property, your solicitor can help you with the process.
Most legal firms offer a conveyancing service to transfer home ownership from the seller to you. This process begins when your offer is accepted, and you receive the keys.
It is your responsibility to do the research when buying a home. You need to make sure you get the best quote, tenure and mortgage amount to suit you. Purchasing a property is a big deal, and you should consider each step of the process thoroughly.