A Step By Step Guide To Buying Your Home
Buying a new home will be one of the most important and exciting things that you will ever do and we want to help you throughout that process. We have put together a step by step guide for purchasing your dream home.
It is important to consult a mortgage advisor, as having a realistic budget and knowing where to be flexible is key. A mortgage advisor will help you find the right mortgage and insurance products to suit you, ensuring key timings are clear throughout the process. There are many factors that need to be taken into account including your income, any debts you may have and how you manage your finances.
Now that you have found the right home for you, it’s time to make an offer. We will pass your offer on to the seller and manage the negotiations between yourself and the seller on your behalf. The seller will consider a number of elements when the offer is made:
- Chain – Are you also selling a property and will the availability of your funds be affected by this? Have you already found a buyer for your property and is your buyer also selling their property? The size of the chain will be something that the seller will take into consideration and in some cases be a key factor as this will determine how quickly you can get access to the funds required to purchase their property and sometimes your schedule may not be convenient for them.
- Proof of Affordability – It’s vital to have a written agreement in principle from your mortgage lender to demonstrate your ability to move forward.
A sale agreed happens when your offer has been accepted (subject to contract). Both parties will have to instruct solicitors to work through the legal aspects of the sale. The sellerâ€™s solicitor will send the memorandum of sale to your solicitor which will confirm acceptance of your offer and your solicitor will begin to work through all the legal aspects of the sale. Once the memorandum of sale is received your mortgage advisor will begin the mortgage application. The sellerâ€™s solicitor will also have to prepare a draft sale contract and provide copies of the property deeds and any other relevant documentation. Once this documentation is received it will be reviewed by your solicitor and you will be legally ready to move to exchange of contracts.
It is important for your lender to ensure the valuation of the property is accurate in order to confirm the security of the loan therefore, your mortgage lender will now need a surveyor to conduct a mortgage valuation of the property before you move to exchange. When the mortgage valuation is done and the lender is satisfied, they will send you a mortgage offer and its terms to both you and your solicitor.
The exchange of contracts agrees the terms of the sale and makes them legally binding to both you and the seller. Before exchanging contracts you will need to finalise and sign your mortgage documents, confirm that all the documentation is in order with your solicitor, send your deposit to your solicitor and sign your contract. Once contracts have exchanged all you have to do is wait for the completion date that was agreed at exchange.
Upon completion, the money gets transferred from you to the seller and the property legally becomes yours. The completion date is often four weeks after the exchange of contracts however, it can be negotiated to suit both of your requirements. At this stage the terms of the sale are now legally binding, which means that your deposit is non-refundable if you change your mind. Equally, the seller is obliged to sell to you at the price you have agreed.
This is the day the balance of the monies is transferred to the seller and the day on which you will get the keys to the property you have bought.