First Time Buyers

Buying your first home can be a both exciting and daunting process. This help guide is designed to outline the keys stages from the start of your search to moving in day!

1. How much can you afford?

To ensure that you are not stretched financially and can comfortably afford the monthly repayments work out what you can afford using your net monthly income, your outgoings and what disposable income you have. A Financial Advisor(FA) or your bank will then be able to advise what mortgages are available and how much you can borrow. It is a good idea to get an 'Agreement in Principle'; a statement from lenders that states what they are prepared to lend you subject to approval of the property.

North Estates can recommend a reliable FA!

2. Start looking

Save time by only looking at properties you can afford to buy. We would suggest setting your bracket 10% above and below the maximum mortgage you can get.

Make a list of your key priorities;

• Location: Distance from station/ city centre/ schools
• Type of property ie. flat/ house/ modern/ period
• Minimum no of bedrooms
• Do you need a garage/ off road parking/ rear garden

Then separate these into must haves and would likes.

Register with online websites and estate agents either by email or call and chat about your requirements; many will send you regular updates via email. Viewing properties can be a timely exercise so use your list of priorities to whittle down those that meet your criteria.

Viewings tend to take approx. 15 minutes per property; remember to leave plenty of time in between viewings in case of traffic; Saturdays can be particularly busy.

3. Making an offer:

To make an offer, the estate agent will require the offer amount and your financial details ie. Your FA's details, mortgage company and your percentage deposit. It's also useful to know if you have any time constraints or are flexible.

If you like a house & you definitely want it, make a sensible offer that will not offend the owners; we all want a bargain but remember to be sensible. If the house is very popular and new onto the market it may well sell for the asking price.

Once you have had your offer accepted, the property will generally be taken off the market & no further viewings will take place.

You will now need to do two things; instruct a solicitor & organise your mortgage. Doing this quickly & efficiently will show all parties that you are serious!

Instruct a solicitor & organise your mortgage quickly to show you mean business!

4. Instruct a Solicitor

Once your offer has been accepted the estate agent will require your solicitors' details. If you'd like a recommendation ask the estate agent; they will have worked closely with many of the local solicitors. As soon as the buyer and seller have instructed solicitors the estate agent will send a 'Memorandum of Sale' to all parties involved.

Your solicitor carries out the conveyancing which is the legal process of handing over a property from one person to another. They also have a duty to protect your interests so they will investigate the legal aspects of the property such as its boundaries and exactly what is included in the sale. Most solicitors will charge a fixed fee and it is usually a percentage of the agreed sale price. It is useful to agree the fee in advance and check whether items like Land Registry Fees and local searches are included.

North Estates can recommend good local solicitors to you

5. Have the property surveyed

As soon as you have had your offer accepted you will need to instruct your FA or bank to carry out the mortgage lenders valuation. The bank needs to ensure that the property is worth the money they are lending you. You can also opt to have a Homebuyers Report or Building Survey for piece of mind.

6. Exchange:

This is a milestone on the road to buying a property. Exchange of contracts is the point at when all parties commit to buying or selling the property; a deposit is placed and a mutually agreeable completion date is chosen.

Remember to have your buildings insurance in place!

7. Completion/ Moving Day!

On this day your mortgage lender will transfer the funds required to buy the property. As soon as the funds have been received by the other sides solicitor then the property is yours. This can happen at any time during the day however is generally between 11 & 3pm.

Re direct your mail and contact the utilities companies in advance!

8. Enjoy your new home!