How do you buy your first property (your own home) and get on the property ladder? Doing this for the first can absolutely be daunting. There’s a whole lot of paperwork to sort out and tasks to complete,a dn understanding who does what and when, before embarking on this venture, can make it less troublesome for you.
While the property ladder may seem a bit steep, don’t fret. There are generally just seven steps to succeed when buying your first home.
It pays to enrich your knowledge, especially if you’re venturing on something you’re not basically familiar with. Buying a house is a massive investment, and not knowing what to do or doing it wrong can be very expensive. What’s important at this point before you make any arrangements is that you do your homework. Find as much information as you can about buying a property, getting a mortgage, the process of getting the ownership transferred to you, etc.
While you’re getting yourself familiar with the process, you might also want to check your own ability afford this purchase. Get your finances in order, see how much you’ve got in savings, and talk to a reputable financial adviser or mortgage broker to see how much you can borrow, Your research tasks also includes looking and asking around for a good property to buy and the services you need (mortgage, survey, conveyancing, removal, etc.)
Apply for a Mortgage
As you become familiar with the basics and shop around for what you need, you’ll likely need a mortgage to cover your purchase. When borrowing, always consider how much you can put down for a deposit – the higher deposit you can guarantee, the better chances you get at a lower interest rate on your loan.
When looking for a mortgage, you’ve got a few options at present: mortgage brokers, individual banks or searching online. And while it may not be easy to get one due to changes in eligibility requirements, you can at least ask them what your chances are at getting a fair offer and an agreement in principle – something that you can show your seller or estate agent to prove you’re serious about buying.
Make an Offer
As soon as you’ve made your choice as to which house you’ll want to buy, make an offer – and a reasonable one. Make sure your offer is subject to contract and survey, so you can either renegotiate or back out before legally binding agreements are finalised and signed. Having a mortgage agreement in principle will help you make an impression to the seller so it’s best you get this arranged ahead of time.
Instruct a Conveyancer
You’ll need a legal expert to carry out the process of transferring the property’s ownership from the seller to you, and complete the transaction. The conveyancing process can be a bit complicated for you and most organisations involved in the transaction will need someone accredited to work on this. Conveyancers will also check things about the property and the local area that could affect its value and your living conditions; that’s besides making sure there are no legal issues surrounding your purchase. www.conveyancing24-7.com simplifies the process of finding a conveyancer by enabling you to compare quotes instantly online.
Arrange a Survey
This will assess the [structural] condition of the property and see if there are major maintenance and repair works needed, particularly when buying a previously owned home. You may be able to use the survey results to renegotiate your offer. If you feel there’s just too much work to be done, as you’ve not exchanged contracts yet, you may back out and look for another property to buy.
Sign and Exchange
If you and your seller are happy to proceed following the survey, conveyancing searches, and final negotiations on the price, you may now sign and exchange contracts through your conveyancers. The deposit at this point should also be paid – generally set at 10% of the agreed price (or higher as you intend to). Once contracts are signed and exchanged, both you and the seller are legally bound to complete the transaction.
Finally, it will be yours. But you may need to get a few more things done at this final stage: pay the remaining balance on the property through the mortgage funds as arranged by your conveyancer, settle your conveyancer’s fees, and arrange for the payment of Stamp Duty and Land Registry. As soon as everything is sorted, you can start moving, as long as you’ve made arrangements ahead of time to avoid rushing and cramming.