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Purchasing a home can be intimidating and exciting at the same time, especially if you’re a first time buyer. You can start getting ready by reading this handy guide, which explains each step, making the process that bit easier.
How much can you borrow?
Most people rely on a mortgage to buy a property, which is a loan, secured against the property itself. By reaching out to a mortgage lender or advisor, and discussing your requirements, they’ll be able to offer you a “decision in principle”, which is an estimate of how much money they can confidently lend to you. With this in hand, you can begin to look at properties, knowing what your price range is.
Starting your search
You can sign up for news alerts through estate agents and property websites, letting you know of new property, as it comes to market. It’s always a good idea to reach out to a local estate agent in the areas where you’re searching. They’ll be able to offer information on where might be suitable, and other areas which you might not have explored yet. Following Readings on social media is a great way to stay up to date with property listings in Leicester.
Viewing a property
Once you’ve found a property you’re interested in, you should book a viewing and see it for yourself! Make sure to prepare, thinking about what kinds of questions you want to ask, and any details you’d like to know about the property. Be thorough, and take the time to explore the house in detail and get a complete understanding of what you might be buying.
Making an offer
Your decision in principle will tell you how much you are able to offer for a property. Remember to be thoughtful at this stage. This is a big purchase, and both you and the seller are trying to get the best possible price. If you’re a first time buyer, this could be attractive to sellers who are eager to avoid delays caused by long sales chains.
Price Agreed
Once a seller has accepted your offer on a property, they will take it off the market to show commitment to the deal. Your solicitors will liaise in order to confirm the details of the sale, and you’ll receive a Memorandum of Sale outlining this.
Getting a mortgage
At this stage you should return to the provider you contacted for a decision in principle, and finalise the details of your new mortgage with them. A mortgage is a big commitment, so be sure to take time to shop around for the best deals available, as well as reviewing the terms.
Conveyancing
Conveyancing is the process of completing the legal requirements in order for the sale of the home to go ahead and be legally binding. This comprises a wide range of paperwork, covering everything from fitting and fixtures, to the legal boundaries of the property.
Additionally, your solicitor will conduct searches on your behalf to see whether there is any information regarding the property that you should be aware of, such as any building code violations, legal actions, environmental concerns, or neighbouring road plans.
This is also a great time to conduct a survey, in which a professional will review the property for potential issues. These are usually relatively fast and cheap, especially compared to the costs of fixing building issues if they do exist. Get in touch today to get a free quote for Readings chartered building surveys.
Contracts
The seller’s solicitor will prepare a draft contract of the sale, which will be sent to your solicitor for them to review and confirm. Once your mortgage has been confirmed and you’re totally happy with the details of the contract and sale, your solicitor will ask you to sign the transfer documents. Your signing will need to be witnessed.
Paying for the property
With the transfer documents signed, your solicitor will request the funds from your mortgage lender in order to pay for the purchase of the property. The funds will then be sent to the seller, who will provide the title deeds, completing the sale. Congratulations, your purchase is complete!
Stamp Duty
After the sale you have 14 days for your solicitor to contact HM Customs, in order to pay any stamp duty on the sale of the property. However, first time buyers are generally exempt from stamp duty on properties up to £425,000. Your solicitors will also register your new ownership with the Land Registry during this time.
Finishing up
The new title deeds will be obtained by your solicitor and sent to your mortgage lender. If you don’t ask for a copy or don’t wish to keep the deeds in the house, your solicitor may keep a copy on your behalf.
…and now, all that’s left is for you to enjoy living in your new home.
If you’re about to start searching for a new home, please get in touch, or call Readings today. You can explore our latest properties online now.
