Buying a house is an exciting commitment that at times can be daunting, whether or not you are a first time buyer or a seasoned purchaser this guide has been designed to point out some valuable stages that you will need to consider to help you along the way.
The First Step
You’ll need to know how much you can borrow, talking to an independent financial adviser, bank or building society will be the starting point and the aim here is to get your ‘Agreement in Principle’, ‘Mortgage Promise’ or ‘Decision in Principle’. Once you have this you will be in a stronger position when trying to negotiate an offer on your purchase as the seller (vendor) knows that you can get a loan.
Costs to Consider
Affordability based on your income and expenditure will be assessed by your financial adviser, and or bank/lender, including your deposit. You’ll also need to consider other costs such as legal (conveyancing) fees, surveys, mortgage arrangements, land registry, removals and stamp duty.
Stamp Duty Land Tax rates from 4 December 2014 have been updated, to assess the amount you will need to pay please follow this link to the HMRC SDLT Calculator
We would be happy to recommend local companies that can provide quotations for the additional services you will require, enabling you to cost effectively.
Found something you like?
Now you have an ‘agreement/decision in principle or a mortgage promise’, worked through costs, affordability and are confident on your budget you are ready to make an offer; this needs to be made through the instructed estate agent marketing the property, they will negotiate as required. Once your offer is accepted, you should request the property is taken off the market subject to you instructing a solicitor and applying for searches (a payment will usually be required by your solicitor). The seller will also instruct a solicitor and draft contract documentation will be drafted for the sale. Your solicitor will guide you from this point, dealing with any enquiries and queries you may have.
During these stages you should also instruct a survey on the property, this gives you an opportunity to assess points important to you, should this prove unsatisfactory then a discussion with the selling agent is recommended or you have the choice to withdraw from the purchase with no penalty to you, unless you have made financial commitments away from the survey.
Now you are at the most exciting point of your purchase; prior to exchange your solicitor will ask for your deposit, once that has been paid and cleared you will exchange contracts with a completion date agreed. Completion is the day that keys are released (subject to confirmation from the seller’s solicitor), you are the owner of your very own new home and a time is agreed for you to be able to move in.
For any further advice on buying a property, for residential or investment purposes please feel free to contact our sales team in Bournemouth, Ferndown, Wimborne or Ringwood.