The First Time Home Buyers Guide
from Clear Choice
THE STEPS INVOLVED IN BUYING YOUR FIRST HOME
We want to be with you for the whole process of buying your home and you can call us and ask questions at any time.
Buying a house typically take 6 to 8 weeks from the initial offer, usually via the estate agent to the completion date which is when you get your keys. This timescale is a guide only and there are many things that can affect it so having an adviser on your side can be valuable reassurance during this process.
Step 1 – Making an Offer
Usually, an offer is made to the selling estate agent, but if no agent is acting on behalf of the seller then make an offer direct to the seller.
It is normal for an agent to ask about your mortgage ability at this stage. This can be proven in the form of a ‘decision in principle’, from a lender. We can arrange this for you, to enable them to put the offer forward. This will help put your offer in a positive light and may improve your chances of having your offer accepted.
Step 2 – Mortgage Application
Once an offer has been accepted then a full mortgage application can be completed. We have access to many lenders and as their products change frequently, please call us at this stage, so we can advise on a product suitable for your needs. Read a summary of the most common types of mortgage here.
Step 3 – Instruct Solicitors
The estate agent will need your solicitor’s details at this stage. They will confirm the offer in writing in the form of a Memorandum of Sale. This gives details of all parties involved, such as your solicitors, their solicitors, the vendors and purchasers’ names and the price agreed. We can help recommend an experienced solicitor to carry out the conveyancing which is what the legal affairs around a house sale/purchase are called. The solicitor will take care of the legal arrangements including paying the stamp duty and the local authority searches, see more info on the various costs of buying a house here.
Step 4 – Arranging a Valuation and Survey
The valuation is usually arranged by your lender as part of your mortgage application. There are 3 types of valuation and/or survey.
Basic Mortgage Valuation
This valuation is for the benefit of the lender. It will be based upon a limited visual inspection of as much of the exterior and interior of the property as the valuer can access without undue difficulty. It is primarily to assess the property for security purpose, confirm the price being paid is in line with the current market value and to establish a buildings reinstatement value for insurance purposes.
Homebuyer Survey & Valuation
Many homebuyers find this the most suitable survey for their needs. It has been designed by the Royal Institution of Chartered Surveyors.
The Homebuyer Survey & Valuation includes information about:
- The property’s general condition
- Anything which might have a material effect upon its value
- Its value in the open market
- An estimated reinstatement cost for insurance purposes
This type of survey provides a concise appraisal of the property and may help you re-negotiate the price. It may also identify points which your solicitor or legal advisor should examine. This report is suitable for most houses, flats and maisonettes. However, if the property is a flat or maisonette, the surveyor will need to know the extent of the property over which service and maintenance costs are shared. He/she will agree with you what should be inspected so that you can understand the amount of liability you might face.
Building Survey
The Building Survey is designed to give you a more extensive report than the Homebuyer Survey & Valuation. It is more thorough and therefore more expensive than the others.
We can help you choose the right type of survey for your circumstances.
Step 5 – The Mortgage Offer
This is confirmation in writing that the lender will lend you the money on the property you are buying. You and your solicitor will receive a copy. You may have to sign a copy and return it to the lender.
Step 6 – Exchange of Contracts
To enable the solicitor to exchange contracts you will have paid them the deposit, unless it is coming from the sale or your current property. Once contracts have been exchanged, the purchase/sale becomes legally binding and neither party can pull out!
A completion date is now set, which is when all the monies are transferred and you will get the keys to your new home. Exchange of contracts can be the same day as completion, but it is usual that there is some time between these 2 events to enable all parties to arrange for time off work and make arrangements with a removal firm.
Step 7 – Completion (Hooray!)
The day the house or flat becomes yours and you get the keys. All monies are transferred and from this day you will need to pay your mortgage.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
If you are experiencing financial difficulty and struggling to make repayments, then you can contact your lender who may be able to help taking account of your individual circumstances. You may want to contact one of the free impartial money guidance and debt advice services such as StepChange, Citizens Advice, or Turn2Us.
“I was more than happy with the service that was provided, Andy Nield went over and above for us, was available anytime time of the day including weekends, he also answered any queries we had and was completely outstanding, and I would advise anybody to use Clear Choice Mortgages, and especially Andy Nield.”
Mr F & Miss H, Nottingham