The House Buying Process

Buying your home is a major undertaking - probably the biggest financial commitment you will ever make. As you look for your dream home you will hear many terms and plenty of jargon bandied about: "fixed rates", "capped rates", "trackers", "flexible mortgages, etc. How do you know which deal will be best for you? There are so many factors to take into consideration that you may well feel very confused.

Seek advice by phoning 0800 801079 and talk to one of our independent mortgage advisers for your area. You will receive advice from a fully qualified mortgage adviser who will lead you through the house buying process step by step and with no obligation.

To help relieve some of the confusion you may have, here is a basic step by step guide to the house buying process.

Step one:
Seek advice from a mortgage adviser to determine your borrowing capacity and to review the costs involved in purchasing a house. It is quite possible to obtain an agreement in principle from the lenders at this stage so that you can commence house hunting safe in the knowledge that a mortgage has been agreed in principle. .

When you have found the property you want you are ready to make an offer – usually through the estate agent. But before you call the estate agent, ask yourself whether you feel the property is good value for money. You may wish to put in an offer below the asking price.

The name of your solicitor will be needed at this stage so its a good idea to obtain quotes before starting the house buying process.(Click here for a conveyancing quote) A good solicitor can make all the difference to the home-buying process and help everything go smoothly.

Step two:
Speak to your mortgage adviser and finalize the mortgage application and any suitable protection policies. Having already had an agreement in principle can speed this part of the process up considerably. The Lender will make all the necessary checks; employer; credit; etc as appropriate for the type of mortgage being applied for. Once satisfied they will instruct the valuation report through an approved surveyor. (Remember you may want to commission a homebuyers report or full structural survey depending on the age and type of property you intend buying)

Step three:
If you have not already done so instruct your solicitor to work for you, and provide them with full property details.

Step four:
Valuation report arrives with the Lender. Note:If the valuation report highlights work that is required the lender may agree the mortgage subject to conditions ie:, work needed on the property. If work is needed, get at least three quotes for every job. The seller should pay for the work to be done, or should be prepared to negotiate a reduction in the asking price. - The surveyor will then have to re-inspect the property.

Step five:
Solicitor carries out searches, for example, to check that the seller actually owns the property or to make sure there are no new road plans that could affect your proposed new home.

Step six :
The mortgage lender will issue the mortgage offer - a copy to you and a copy to your solicitor. The Mortgage Offer sets out the terms and conditions that will apply to the Mortgage Contract. The solicitor will also receive a legal pack from the Lender.

The legal pack contains full instructions about how your solicitor should meet the Lenders completion requirements. This pack includes items such as the form of undertaking, which your solicitor is required to give the Lender, a copy of the deed of mortgage and charge, loan advance requisition form etc.

If all is in order, your solicitor will draw up and send you the legal paperwork to sign and return along with the deposit as applicable.

Step seven:
The solicitors will exchange contracts with the sellers solicitor, and advise you of the expected completion date. You are now legally committed to the purchase. You should speak with your Mortgage Adviser to ensure that all necessary insurance's are in place and placed 'On Risk'.

Step eight:
Start planning the move. Pre packing can relieve the stress on the day. Book removals in plenty of time

Step nine:
On completion day, call the seller's estate agent to arrange picking up the key.

Step ten:
Pick up the keys and move in.