· Calculating your budget
We’d recommend that you get a good idea of how much you can borrow before you start to look for your new home. You shouldn't just consider the maximum lending limit but should review exactly what is affordable for you , i.e. how much can you afford to spend once you have considered your other out-goings.
- Use mortgage talk's Calculators to determine approximately how much you can borrow and how much this would cost on a monthly basis.
- Enter your out-goings into the "Budget Planner" for a quick an easy guide to what you can afford OR use the planner to work-out where you can save a little extra cash!
- Don't forget to review the "Transaction Costs" to see what it costs to buy/sell a property then enter your details into the "Moving Cost Calculator" to give you an overall view of the charges involved.
Alternatively contact mortgage talk. We are happy to review your finances for you and can even arrange for a suitable lender to provide you with a Mortgage Certificate which is an 'agreement in principle' to the amount you are able to borrow (subject to status and credit checks). This can help simplify the mortgage process later on and also ensures any offer you make on a property is taken seriously by the vendors.
· Finding a property
Endless properties to view, each one less suitable than the last. It’s not many people’s idea of home-owning heaven!
But, you can minimise your time by narrowing down what’s suitable from what’s not.
Think carefully about what you want from your new home.
For example:
- Do you need to have easy access to a town or city?
- Do you need to consider where you work or schools, or access to local amenities?
- Are there any particular property types that you like, such as Victorian, Edwardian, or "New Build" homes?
- How do you feel about making some repairs or decorating the property? What is your overall budget for these works? You might want to take an expert to have a look on your behalf.
· Viewing a property
Take a look at the property during different times of the day. Remember, the locality might change at different times, due to traffic, schools or even pubs.
Look for obvious signs of potential problems as you go round, such as bulging or cracked walls, rotten woodwork and signs of damp. Be brave – ask the owner about them. And remember, a survey will reveal more information about these issues.
Why not take someone else along to your viewing? Someone who is not emotionally connected to the purchase can sometimes spot things you might miss.
· Making an offer
Don’t be afraid to offer below the asking price, as the seller might be willing to accept a lower offer. Once an offer is accepted, it’s time to instruct your solicitor, apply for your mortgage and make arrangements for a survey of the property.
· Survey
Your lender will conduct a valuation or survey on the property to advise on the property’s value and identify any structural problems that might exist. As all negotiations remain subject to contract at this stage, you can still renegotiate the price of the house if the survey highlights any issues. In addition, your solicitor will also check which items are included in the sale of your property.
· Legal
When buying a property, you must instruct either a solicitor or licensed conveyancer to handle the legal aspect of the transaction. Top Tip – use a professional who specialises in conveyancing, so the process is as swift and painless as possible.
· Draft Contract
The draft contract is written by the seller’s solicitor and sent to the buyer’s solicitor. Your solicitor or conveyancer will check the contract, as well as view the information on the title deeds to ensure the title to the property is satisfactory.
· Formal Mortgage Offer
The formal mortgage offer contains all the terms and conditions specified by your lender. Once signed and returned your offer of finance is in place and you are ready to exchange contracts.
· Exchange of Contracts
The contract is signed by you and the seller, and the deposit you have put aside will be forwarded by your solicitor to the seller’s solicitor. At this point, the buyer and the seller agree a completion date, where the keys to the property will change hands.
At this stage you are committed to the purchase, so if you fail to complete the purchase, you will have to forfeit your deposit, up to 10% of the purchase price.
At exchange of contracts you are responsible for insuring the property and therefore must ensure you arrange buildings insurance cover if there is not already a policy in place e.g. an apartments building insurance is usually covered within the maintenance agreement.
· Completion
This usually occurs between a few days and a few weeks after exchange of contracts, depending on what is agreed between the buyer and the seller upon exchange. At this stage, the balance owed is transferred from the buyer’s solicitor’s account to the seller’s solicitor’s account.
On legal completion, you collect the keys and move into your new home.