Being a first-time buyer, purchasing a home might be intimidating because it involves a significant financial commitment. Use our timeline to learn more about the procedures involved in buying a property, including the procedure, important phases, and expected costs.
Stage 1 – Find a property you can afford
Determine your budget for a home or apartment purchase and your monthly mortgage payments before you start looking for a home.
Think about costs
When considering if a house is affordable for you, be careful not to overextend yourself and consider how you’ll manage if your income declines or interest rates rise.
Keep in mind that your money will need to cover more than just the down payment, as well as costs like mortgage fees (which are normally somewhere between £0 and £2,000) and stamp duty.
Choosing the right mortgage
You should never wait to consider applying for a mortgage because the process can take some time.
A mortgage can be obtained from a lender, mortgage broker, or independent financial advisor (IFA).
If you choose a mortgage product and are approved, you will receive a mortgage “in principle.”
In addition to the interest rate you’ll pay, this informs you of the amount of money the lender is likely to offer.
If you want to reserve the mortgage product you desire, you might have to pay a booking fee. Typical price: £99 to $250
Check your credit report
Check your credit report for any inaccuracies and to determine your credit score before to applying for a mortgage.
When evaluating your application, lenders will take this into account.
Stage 2 – Make an offer
The next step after buy a home you wish to buy is to submit an offer, typically through an estate agent.
An estate agent is only paid for if you are selling real estate. The commissions typically range from 0.5 to 3 percent of the selling price, plus VAT.
Stage 3 – Arrange a solicitor and surveyor
The surveyor will appraise the property and look for any issues that could lower its value.
The legal work related to the property will be handled by the conveyancer or solicitor. They will inform you of the cost ahead of time and may want a deposit, which is typically 10% of the total cost. Costs typically range from £500 to £1,500 plus VAT.
In order to determine whether there are any local or planning issues that could affect the value of the property, your solicitor or conveyancer submits searches to the local council. Average price: $250–300.
Before approving the mortgage, the lender conducts this survey to make sure the property is worth the price you are paying.
It isn’t a thorough survey and won’t find every possible repair or maintenance issue.
Costs typically range from £250 to £1,500, depending on the value of the house.
Depending on the mortgage package you choose, some lenders might not charge you for this.
The property survey
Since it will eventually be your property, it is in your best interest to now pay for a thorough survey. Additionally, it can help you renegotiate the price.
You may urge the seller to reduce the price by that amount, for instance, if the survey reveals an issue with the house that will cost £5,000 to fix.
There are various survey types available, including:
- RICS condition report is the simplest and least expensive “traffic light” survey. It works best for newly constructed and well-maintained conventional homes. In this survey, no recommendations or assessments are made. Cost: £300.
- suitable for conventional properties in decent condition, according to the RICS homebuyer report. This is a much more thorough survey that examines a property both inside and out. A value is also included. Average price: $400+.
- The most thorough survey, a building or structural survey is appropriate for all residential properties. For older homes or homes that might require repairs, it’s especially beneficial. Average price: £600+.