Step by Step Guide to Buying a House
After years of saving you are now ready to finally buy your own house. Buying a house can be stressful it involves a lot of people and the process is lengthy if you are not cautious you may end up incurring unnecessary costs that could have been avoided if you had the right information, I trust that at this moment, every pound counts, you do not want to lose even a single penny.
Shopping For a Mortgage
A mortgage is simply a loan borrowed for the purchase of a house. If you do not have a large amount of money in your bank or have a property to sell that is valuable as the one you want to buy then a mortgage is a saver. The worst thing can happen when you do not pay the loan is repossessing of the house in question. You might not be having any information on how, where and who to approach for a mortgage, this should be the least of your worries, mortgage brokers are a great source of information they will give you a personal touch and assist you through the process, approaching your individual bank for information about mortgages will give you a detailed explanation regarding mortgages they may even have special offers for their customers and you stand to benefit from it, another informative and reliable source of information on mortgages is through online searches this are reliable as they will show you what is available and what is not. For the best deal, property buying specialists advise that you use all of the given options for a wide and deep perspective.
Getting a mortgage requires you to organize your finances and forecast if you can still service your mortgage in future even when changes like losing your job occur. You should start by aligning your budget to look like you already have a mortgage. Ensure that you save at least 10% of your income for the house. Once you can do that then it is time to go ahead and get a mortgage offer. This is the first step towards owning your own house so take it boldly.
Shopping for a Home
With finances sorted you must be seeing the hopes of having your dream house coming true now. For easy running of the process, you will need to hire a solicitor or a licensed conveyancer. All your legal matters regarding the whole process of purchasing of your property will be handled by the solicitor. You do not want to be caught off guard or even find yourself paying fines out of ignorance of property buying laws. Besides, you will also need a surveyor on board. The surveyor will give a report of the house in regard to the value of the house; also the assessment of the property in case of any problems will be done by the surveyor. At the end of the valuation, the surveyor will give a cost of repairs and any works if any.
You will need to search for a house. The search may not give the results you are anticipating for. You will see a lot of houses and it may not be possible to remember every detail of each one of them. At some point, you will need to refine your search and settle for the second best option after you miss out on features that you might have loved to have. When shopping for houses check out for the details of the house. Look at the plumbing, the electrical fittings and installations test them to see if they are working perfectly, evaluate the neighbourhood remember this is going to be your home do not get stuck in a neighbourhood where you cannot find parking space for your visitors or have a problem in finding a school in the neighbourhood for your children.
You are getting much closer to moving into your new home. A deposit of 10% should be made to your solicitor. This amount acts as a booking fee for the purchase of the house. It is a way of confirming that you are serious about buying the house.
Your search has now come to an end, all you need to do is put an offer on the specific house you have decided to buy. You can do this through an estate agent for smooth running of the deal if there is one available but if there is none it is still alright you can go about it on your own. It is important to note that if you find a problem from the survey or contract you still have a chance to pull out of the deal. You may be required to pay an amount of money as holding fee, the money is refundable.
Arrange for a Mortgage
The arrangement for a mortgage should be ready by now. Approach your mortgage company so that the offer is completed. If you are still stuck without a mortgage you need to work round the clock to keep the buyer’s patience.
Hire a Solicitor
A solicitor will be helpful in the buying process. All your legal work and paperwork will be handled by the solicitor.
Closing the Deal
Exchanging of the contracts is the official sign that tells you have agreed to buy the house while the seller has agreed to sell the house. The 10% deposit paid is also ensured and a further date set when completion of payment is to be made it usually takes about 4 weeks after the exchange of contracts. The survey report is also considered before the contracts are exchanged.
The final step involves completion of the purchase of the house. The remaining 90% cost of the house is paid. Other payments like the solicitor’s fee, stamp duty which is a must to pay and any other removal costs incurred are to be cleared at this point.