Your home is likely to be the most expensive thing you buy in your lifetime. It’s an incredibly exciting time, but it can also be a bit overwhelming if it’s your first time. Because while it seems like a fairly simple process from the outside, there are a lot of little steps that can easily trip up a first-time buyer. A seemingly small decision could save you – or cost you – thousands of pounds, and make the whole process more stressful than it needs to be. So, if you’re a first-time house buyer, this one is for you. We’ve pulled together all our years of knowledge, and given you a simplified step-by-step guide to buying a house. And because it’s a bit of a long process, this will be split into 2 posts, so keep an eye out for part 2!
Work Out Your Moving Costs
Before you do anything else, we recommend creating a rough estimate of what it will actually cost you to move. This doesn’t include the price of the house, but all of the other costs that sneak in at the edges without you realising. Things like legal fees, lender fees, removals, broker fees, stamp duty – all of it adds up, and it could impact how much you look to borrow from your mortgage lender. By working out roughly what those costs will be up front, you avoid some nasty surprises further down the line, and reduce your risk of the sale falling through.
Find Out How Much You Can Borrow
Hopefully you have a rough idea of the kind of property you want to buy, and how much you want to spend. But that doesn’t necessarily mean you’re going to be able to borrow that amount. Now is the time to approach some lenders, either on your own or through a broker, talk through your options and get something called a ‘decision in principle’. This means you will be assessed for a mortgage and provisionally granted one – enough that you can have the confidence to go out and find a property. Keep in mind that an independent broker can often suggest more options than a bank, as they’re not tied to any one lender. Ask for recommendations on a good broker.
House Hunt!
This is the fun bit! It’s time to go looking for the perfect property. Scour RightMove and the other portals, talk to some estate agents and put yourself together a short list. We recommend writing yourself a list of what you’re looking for in a property, and splitting it into things that are essentials, ‘would like’, and ‘not too fussed’. That way you can measure each of the properties you find against this list to make sure they will be right for you. Approaching this with an open mind is always a good idea as well – for example looking further afield at surrounding commuter towns could get you more house for your money, so it’s worth considering them.
Arrange Some Viewings
Once you’ve been looking around and decided on a few properties you’re really interested in, it’s time to book some viewings! Contact the estate agents listing the properties and arrange to go and look at the property. We have some tips on what to look for and what to ask about when viewing a property, so we also recommend you read those too! Many estate agents are now doing virtual viewings before a physical viewing so you can get an idea of whether the property is right for you, and most agents will encourage viewing a house more than once.
Making An Offer
In all of your viewings, you will eventually find the property that makes you say ‘this is it’. And because you’ve already got your Decision in Principle, you can go ahead and put in an offer. This is where you tell the selling estate agent that you want to buy the property, and the amount you are wanting to pay for it. They will then either accept or reject your offer after discussing it with the seller. Don’t be put off if your first offer isn’t accepted – buying a house is a negotiation, and both you and the seller are looking for the best price.
Find A Solicitor
If your offer is accepted, you need to find a solicitor. They will be the person acting on your behalf in all of the legal aspects of buying the house, and they will help you with things like conveyancing and contracts. You can find your own solicitor, or ask the estate agent who they recommend. Just make sure they have some property experience before you sign up.
Agree A Sale
When the seller’s estate agent has the details of both your and the seller’s solicitor, they will confirm that the sale is agreed, subject to contract. This means that the property is provisionally yours, provided all of the contracts go through OK. You should receive something called a ‘memorandum of sale’ to confirm this. With this in your hand, the complicated part begins.
That’s all for part 1 of this blog. Keep an eye out for part 2, where we will be covering the nitty gritty parts of buying a house that can come as a bit of a shock to first time buyers. In the meantime, if you need any help, support or advice around buying your first home, we are always on hand to help. Just get in touch to book a free consultation with one of our team.
