Buying a property can be both exciting and daunting, our advisers will try to make the process as effort-less as possible but here are some important things to consider.
The main concern most people have when considering a move is whether they can borrow the amount required. This can throw up some many questions – What amount of deposit is needed? What will the monthly payments be? Will you be accepted? Not to mention all the different schemes available including the popular Help to Buy schemes. We will try to ensure you are well prepared to start your property search and are ready to move forward when you have identified your property.
Giving you all the tools you need
During the initial conversation your adviser will have provided an idea on the general process involved, including what documents are going to be required. After completing a fact find the adviser can provide you with a mortgage decision in principle with a lender which allows you to conduct your property search with relative confidence. As this document is sometimes requested by estate agents / builders it acts as an important tool during the process.
Starting your property search
Often having to deal with estate agents and builders can seem difficult but its important to stay focused. You will know a good deal regarding the process and knowing what you can afford should keep this phase exciting. The important thing is to stand firm and feel confident. Your adviser will be on hand to liaise with any questions you may have.
You’ve found the perfect house
Ok so you have found the perfect home, the process now will differ dependant on the type of purchase:
Brand New Properties tend to come with a fixed purchase price, which is non-negotiable. Usually a small reservation fee is payable (£500) to secure the plot with a rigid timescale to reach exchange of contracts (28 days being the norm). These scenarios can sometimes lead to a feeling of being pressurised by the sales agent to use their recommended adviser/solicitor, but the key is to be aware you are not obliged to use anyone in particular. The choice ultimately comes down to you. You will complete the reservation form with the builder where they typically ask for information which your adviser can provide.
Traditional Re-Sale Properties are often marketed by estate agents while the price the seller is asking for is not necessarily the price they will finally accept. There is often a degree of negotiation being buyer and seller before agreeing on a price. Being a first-time buyer can put you in a strong position as they are often preferred by sellers because your purchase isn’t reliant on selling another property. Again, estate agents are often incentivised to recommend an in-house mortgage adviser so the same advice as above rings true that the choice is down to you as a consumer. Once a price is agreed the agent will complete a memorandum of sale agreeing to the sale subject to contracts, again your adviser will be on hand to help during this.
Mortgage Application and Processing
With all the initial work done by the adviser and the property found the adviser will formalise the mortgage recommended and provide all the documentation ensuring you fully understand the key details. You will agree the type of property survey and provide any outstanding information to the adviser to allow the application to be submitted to the lender. You will also agree which solicitors to use to carry out the legal work involved and start the home buying process with them. Your adviser will also make a recommendation regarding home insurance and protection requirements based on your circumstances.
Underwriting and Offer Stage
The mortgage lender will carry out the property survey (usually within a 7 – 10 day timescale) whilst your adviser will provide any requested documents to the lender to allow the case to be assessed and underwritten. Once approved the lender will issue the mortgage offer document and focus will shift to the solicitors to complete the legal work involved to reach exchange of contracts stage, this is where you and the seller become legally liable to complete the transaction. This is usually carried out of the same day as you complete with a traditional purchase but on new homes this can be many months before the property is ready.
Once your solicitor has carried out all the necessary work involved you will be required to pay your deposit (if applicable) and any outstanding fees to prepare for completion. A completion date will have been agreed and once monies are exchanged you will be able to collect your keys. Your adviser will put in force any applicable insurance policies and you should receive correspondence from the mortgage lender outlining your first mortgage payment.
Your adviser will agree future contact to review your circumstances throughout.