First-Time Buyers – The Process of Buying a House

First-Time Buyers – The Process of Buying a House

For first-time buyers, the process of buying a house can seem overwhelming. There’s a lot to take in, and when you’ve got so many other things bouncing around in your head, it can feel like too much. However, it’s always good to understand the steps that are involved and have an outline of what’s going on behind the scenes.

There are some steps that aren’t essential but can save you a lot of hassle down the road. As with any big decision in your life, making sure you’re prepared for as many eventualities as possible will not only give you peace of mind, but it will also help you to move through the process as smoothly as possible. Knowing what you need to do, and the things that go on in the background is a great place to start.

Let’s have a look at the steps to buying a house.

Your Step-By-Step Guide to Buying a House

Getting a Mortgage in Principle

One of the most daunting steps for any first-time buyer is applying for a mortgage. Although you can’t apply for a full mortgage until you have an offer accepted, it’s worth applying for a mortgage in principle. Some estate agents will only allow you to view houses with this document. It will give you an indication of whether you will be accepted for a full mortgage when you apply.

If you are rejected, it may also flag the areas you need to work on to improve your chances to be accepted. The mortgage lender will look at things like your credit rating, how much you earn, and your outgoings, to assess whether you will be able to afford the mortgage repayments.

All being well, and you get a mortgage in principle, you can then move onto the next step.

Compiling a List of Properties

One of the most exciting parts of buying a new house is doing a property search. You’ve probably done one before, whether that was for renting or having a look at what’s on the market. Typing in your filters on an online property search, knowing that your future home could be at your fingertips is an anticipation filled experience.

Looking online is one of the most popular ways to find a new property, but if you fancy being a bit more traditional, you can head down to your local estate agents. Speaking to them directly will allow you to find a list of properties within your price range and could be a way to add a few more properties to your list. Once you’ve compiled a list of potential properties, you can move onto booking house viewings.

Looking at Houses

Although it takes a bit of time, viewing houses is the only way to get a real feel for the property. You also get the opportunity to talk to either an estate agent, the owner of the property or both. This gives you the opportunity to find out more information and ask any questions about the property. It’s good to take your time and make sure you have all the information you need. We all have a list of things we want when it comes to our first home, and making sure the property ticks the right boxes helps you to make an informed decision. Once you’ve found a property you like, you can make an offer.

Putting in an Offer

Putting in an offer on a house feels like a big step, but at this stage it’s all about negotiation. It can be helpful to look at houses that are similar to the one you’re putting in the offer for and see what they’ve sold for. Along with looking at the guide price, this can give you an idea of what a reasonable offer might be. Once you’ve decided how much you would like to offer, it’s time to have a chat to the estate agents. They will make the owners aware of your offer, and then you wait.

After any negotiations, if all goes the way you planned, your offer will be accepted.

Instruct your Property Lawyer

Then it’s time for your property lawyer to get to work. Ideally, you will have a company lined up, and budgeted in the fees. That way, by this point, all you will need to do is let them know the offer has been accepted and you’re ready to go. While your conveyancers are busy in the background doing things like drafting up contracts, you can continue with things on your side.

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Applying for a Mortgage

Like we mentioned earlier, you should have your mortgage in principle already, but in order to get the real thing, you need to apply for a full mortgage. This will be the full agreement that will state how much your monthly repayments are and over what period of time. It might sound obvious, but applying for a full mortgage with the lender you got your mortgage in principle with is your best bet. You have already given them most of the information they need, so your chances of getting accepted are quite high.

Getting a Survey

If you’re a first-time buyer, getting a survey on the property might sound like a foreign concept. Surveys can reveal costly issues with the property that need dealing with, which could potentially make you want to retract your offer or make a deal with the current owner. Depending on your budget, you can get different levels of survey which range in cost. The goal is to get a deeper understanding of the condition of the property and find out if there’s anything you should be aware of. It’s important to do this before the sale is complete, as once the property is in your name, you can’t retract your offer.

The Legal Work

Your conveyancer is responsible for all the legal work that goes on in the background. They should keep in touch with you throughout, communicating the progress and any issues that arise. From the day the offer is accepted, your solicitor/conveyancer will be doing things like running checks, communicating with the seller’s lawyers, checking boundaries, negotiating key dates and drafting and sending contracts. On top of that, transferring the ownership of the property to you is also their job. This will happen on possibly one of the most exciting but busy days of your life, and that’s moving day.

Moving Day

After all these steps, the big day will finally arrive. It’s time to move into your new home! With your boxes packed, and removal company ready to go, it’s time to start a new journey. Making sure you’ve got a plan sorted and have all your preparations ready will help the day to go as pain free as possible.

How We Can Help

We’ve tried to narrow down a very complicated process into a short blog, but we hope this gives you an idea of the kind of steps you need to take as a first-time buyer. Buying your first property is a dream come true for many people, and with the right knowledge and preparation, it can be an amazing experience.

One of the most important parts of buying your first home is making sure you have the right legal support. If you’re already on your way to buying your own house, but you’re yet to find a conveyancer, look no further. At Barrett and Co, we pride ourselves on taking care of first-time buyers from start to finish. Contact us today and see how we can help you.