Your guide to the property buying process

Recent research revealed that 69% found buying a new home stressful. In fact, this major life event was deemed more taxing than welcoming a new child, changing jobs and caring for an elderly family member! The key to managing the stress of buying your first property however has to be going into the process with your eyes wide open.

To help you on your way onto or up the property ladder, we’ve devised a step-by-step guide of what to expect from the property buying process.

Work on those finances

You’ll need to get your finances in order before you begin your property hunt, which means digging deep into your income, expenditure, and the current mortgage and property markets.

From here you can work out how much you need to achieve your property dreams, including how much deposit to save and how much you can realistically borrow based on your income and credit score. Don’t forget to budget for the hidden costs that apply when purchasing your first home.

Once you have your figure, don’t delay, start saving! The sooner you begin the saving process, the faster you can move forward to the next step.

Get an agreement in principle

Now you have (or at least, almost have) your house deposit, you can obtain a mortgage agreement in principle.

An agreement in principle (AIP) is supplied by your mortgage broker or a prospective lender to provide a clearer picture of how much you’ll be able to borrow. Applying for an agreement in principle is easy and free, and it’s generally valid for 90 days.

Whilst an agreement in principle is by no means a guarantee of the mortgage offer you’ll receive after a full application, AIPs prove particularly useful to buyers as the HomeOwners Alliance details:

“Having a mortgage agreement in principle can help speed up the home-buying process, as you know how much you’re likely to be able to borrow. Having evidence of this also makes you a more appealing buyer. It will give a seller and their estate agent confidence that you’re serious about the purchase… A decision in principle is also useful for borrowers that are worried about meeting a lender’s eligibility criteria.”

Start your property search

With your agreement in principle in tow and your finances in check, your property search can begin!

Register your interest with local estate agents and use online resources to scour your search areas. View any shortlisted properties in person, and if you’re interested, book repeat viewings. Try to view at different times of the day and week to get a real feel for the property and the surrounding area.  Once you’ve found the property that is perfect for you, make an offer!

The seller’s accepted, what’s next?

Congratulations on having your offer accepted! After raising a quick toast, start your formal mortgage application. Our brokers will be able to guide you through the process to ensure you find the mortgage product you want and negotiate the application with ease.

You will also need to find a conveyancer or solicitor to handle the legal bits of your purchase. Your chosen conveyancer or solicitor will draft the contracts; request the property’s title deeds; confirm details such as boundaries, alterations and disputes; and perform those all-essential searches.

Take a closer look at the property

Your lender is likely to request a mortgage valuation survey be completed to ensure that the property you want to buy is worth the money you’ve offered. Going beyond this and commissioning your own property surveys will give you the clarity and confidence to proceed with the purchase.

Surveys assess the condition of the property, identifying issues that could put a burden on your budget after you move in. The findings of a survey not only help buyers define how much they may need to budget for any repairs or upgrades, but they also provide leverage to negotiate the purchase price.

Exchange and complete your purchase

It’s time to exchange contracts and agree on a date for completion, which usually takes place two weeks after exchange. Before you do however make sure you obtain home insurance, valid from the day you exchange.

Now all that’s left to do is pack up, prepare and wait for the big day! Happy moving!

Need help finding the right mortgage product for you? Our advisors can source the best mortgage and protection products so you can really get excited about purchasing your first or next property. Find your advisor today to get started.

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