The home buying process
Getting started
Before starting to look for a house it is advisable to ascertain how much money you can borrow in the first place. You can do this by asking for a "mortgage agreement in principle" before you even start looking at property. This will give not only give you a better idea of your budget, it will also speed up your mortgage application later on in the process.
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Finding a property
Viewing properties can be time consuming and frustrating. You can cut down wasted time by listing your requirements, so that you only view properties that are likely to be suitable for you. Below are some suggestions to consider before viewing a property:
• Location
• Type of property
• Local shops, amenities and schools
• Transport links
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Viewing a property
The next step is to actually view several properties. This will give you a feel for different areas, styles and criteria that matter to you. After several viewings you will have a much better idea of the type of property you are interested in.
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Making an offer
Once you've found a suitable property put in an offer as soon as possible.
If the offer is accepted than you should consult with your solicitor regarding the next steps.
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Survey
A survey is carried out on the property by a surveyor on behalf of the mortgage lender to identify any structural problems and advise on the property's value.
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Legal
When purchasing a property a solicitor will be required to ensure the transfer of ownership.
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Draft Contract
The draft contract is written by the seller's solicitor and sent to your solicitor. After receiving the contract your solicitor will start preliminary enquiries and make a Land Registry search and check other legal documents such as the title deeds to the property.
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Local Authority Search
Your solicitor will submit a local authority search to the local borough council. This will reveal, for example, planning consents granted for the property and any local issues.
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Contract Approval
Once results of the local search and answers to the preliminary enquiries are received, the draft contract is approved by your solicitor, providing there are no other outstanding enquires.
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Sale Agreed
Once your offer, based on the findings of the survey, is accepted, you will need to instruct your solicitor to proceed immediately. At this stage always ensure that exchange and completion dates are agreed.
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Formal Mortgage Offer
The formal mortgage offer from your mortgage provider will be sent to your solicitor for you to check through and sign. Once signed and returned your mortgage is in place and you are ready to exchange contracts.
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Exchange of Contracts
The contract is signed by you and the seller. The deposit is electronically transferred or paid by the buyer's solicitor in the form of a banker's draft.
Once you have signed and exchanged contracts with the seller you will have to pay a 10% non-returnable deposit. At this stage you are committed to the purchase. If you pull out after you have exchanged contracts you will have to forfeit the deposit. At exchange of contracts you are responsible for insuring the property and therefore must ensure you arrange buildings insurance cover.
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Completion
The remaining money owed is now transferred from your solicitor's account to the seller's solicitor's account.
On completion day the legal ends are tied up, you collect the keys and move into your new home.