A Step-by-Step Guide to Buying Your First Home
Buying your first home is an exciting milestone, but it can also feel overwhelming. With so many steps to navigate, it’s important to understand the process from start to finish. Here’s a step-by-step guide to help first-time buyers.
1. Speak to a Mortgage Adviser
Before you start house hunting, it’s important to speak to a Mortgage Adviser to establish your budget. This will be based on your deposit, income and outgoings. This will also give you the opportunity to gain an Agreement in Principle. An AIP is a statement from a lender indicating how much they might be willing to lend you. It’s not a guaranteed offer but it gives sellers confidence in your ability to buy.
2. Save for a Deposit
Most mortgage lenders require a deposit of at least 5-10% of the property's value. The larger the deposit, the better mortgage rates you may secure. Using a Lifetime ISA can boost your savings, as the government adds a 25% bonus to your contributions if you are eligible.
3. Start House Hunting
Register with your local estate agents, so you can be the first to know about any suitable properties, sometimes before they hit the property websites. You can also look online on estate agent websites and property portals such as Rightmove and Zoopla. Consider the location, transport links, local amenities and future potential of the area. Take your time to find a home that suits your needs and budget.
4. Make an Offer
Once you find the right property, make an offer through the estate agent. Be prepared to negotiate, and don’t be afraid to offer below or above the asking price if appropriate. Once your offer is accepted, the property will be ‘under offer’ or ‘sold subject to contract’.
5. Best and Final Offers
In a competitive market, sellers may ask for Best and Final Offers from interested buyers. This means you submit your highest offer, details of your financial position and ability to proceed quickly. The seller will then choose the most attractive offer, which is not always the highest. They will consider your position and ability to proceed, being a first-time buyer puts you in a great position as you are not in a property chain.
6. Instruct a Solicitor or Conveyancer
A solicitor or conveyancer will handle the legal aspects of buying your home, including property searches and contracts and liaising with the seller’s solicitor. It’s crucial to choose a reputable professional to ensure a smooth and timely process.
7. Arrange a Mortgage
Once your offer is accepted, you can then formally apply for a mortgage. Your lender will conduct affordability checks and carry out a property valuation to confirm its value. If approved, they’ll provide you with a formal mortgage offer.
8. Conduct Property Surveys and Searches
A survey helps identify any potential issues with the property. Options include a Mortgage Valuation, a Homebuyer’s Report, or a Full Structural Survey. Your solicitor will also carry out local authority searches to check for planning issues, environmental risks and legal matters.
9. Exchange Contracts
Once all legal checks are completed, you’ll exchange contracts with the seller. You’ll pay your deposit at this stage, and the sale becomes legally binding.
10. Completion and Moving In
Following the exchange, it’s time for Completion, which can happen either simultaneously with the Exchange of Contracts or days/weeks after. Your solicitor will transfer the remaining funds to the seller, and you’ll receive the keys to your new home from the estate agent. Now, you can move in and start enjoying your new property!
Buying your first home is a big step, but with careful planning and the right support, you’ll soon be unlocking the door to your dream property. Happy house hunting!
