Once you’ve decided you want to purchase your first home, visit a financial advisor to ascertain how much you can borrow and the types of mortgage available to you. As a first time buyer, don’t forget to ask about first time buyer mortgage offers like cash back incentives and free valuations etc.
Register with estate agents in the area where you want to buy and scour you local paper each week.
Visit www.propertyfinder247.co.uk to find your local paper’s property website listings. Ask your estate agents all of the right questions before you waste time visiting properties that are totally inappropriate and maintain regular contact with them.
Visit as many properties as possible and once you have found the one you want and can afford, it’s time to put in an offer (via your estate agent). As a rule, start below the asking price. If the vendor says no, it allows room to move upwards. The only exception is if the market is ultra competitive or it’s an undisputed bargain. Remember, as a first time buyer you have extra bargaining power as you have nothing to sell, especially if you can move straight away.
Once your offer’s accepted, you’ll need to give your chosen mortgage company details of the property and proof of your income for the green light. Ideally, get an agreement in principle before this stage so everything is already in place.
Next you’ll need a solicitor who will help transfer the property from the seller’s name into your own. Estate Agents normally give you one week to give them details of your solicitor. This also indicates how serious you are in the purchase.
Once your mortgage has been instructed, they will send someone to survey the property to check it is worth what you are paying.
Your solicitor will now also check with the Land Registry to ensure the vendor has the right to sell, do local authority searches to check, for example, that no major road works are planned behind your new home and to make sure that leases are acceptable.
However, for your own piece of mind get something more in depth, like a Homebuyer’s Report too – especially if the house is old. This will give the lowdown on things like damp, rot or structural problems. You should also arrange for the gas and electrics in the property to be checked out because if any work needs to be done.
Now it’s time to exchange contracts. You and the seller sign a special legal contract that's been drawn up and agree a completion date when the property will become yours. Once the legal work is in place and signed, the purchase is legally binding so you can't back out! You also pay your deposit over to your solicitor at this stage.
Now is a good time to arrange all of your life assurance insurances so that they are ready to start on the completion date. Insurances you should consider are:
With the completion date agreed, you can now obtain quotes from removal firms and instruct your chosen firm. Agree with the seller to inform gas, water, electricity and telephone suppliers of change of ownership. Arrangements should be made for meters to be read and services reconnected. Inform your bank, electoral register and company payroll department etc. of your new address.
On the date completion your solicitor will arrange for the transfer of money from your mortgage company to the vendor's solicitor. On this day you will also pay the stamp duty and will receive your solicitor’s bill for all of the searches and legal fees.
Get your keys and move in – crack open a bottle of bubbly and celebrate! Now you are a home owner you should also consider writing a will - after all you now have a rather large asset. Congratulations!