Feb 28
When I initially purchased my first property I was shocked at how complex and time consuming the process is. It wasn\’t a particularly pleasant experience as I felt that much of what the people I dealt with assumed I knew, I actually didn\’t! With hindsight I\’ve found that most first time buyers feel the same. Therefore I decided to produce a list of easy to understand \’steps / tips\’ which I feel will help first time buyers and also remind myself in the event of me purchasing further properties! Without further intro, here goes:-
· Contact a mortgage advisor (e.g. maybe go through Bairstow Eves, Bradford & Bingely or another Estate Agents) and arrange for a consultation. This is free and non-committal. This will give you a good indication of HOW MUCH YOU CAN BORROW, PAYMENTS and FEES INVOLVED. At this stage the advisor may be able to provide you with a Mortgage Certificate which indicates how much you can borrow. These are usually valid for 3 months.
· Contact a solicitor and inform them you are presently searching for properties. Ask them to act on your behalf once you find a property. Solicitor total fees usually average around £750. This includes land registry searches etc.
· Once a property has been found, viewed and deemed suitable you can make an offer. This is usually via the Estate Agent although you can directly make an offer to the house owner. I suggest you start with an offer of at least 20% below the asking price (if the property has no chain and the owner requires a quick sale offer lower). Once you’ve made an offer you should visit the mortgage advisor again. He/she should give you more \’concrete\’ (no pun intended!) information and can arrange a mortgage in principle (this involves no commitment, but allows a definite borrowing figure to be given). If you can find better mortgage deals elsewhere they are worth looking into – although the mortgage advisors can often gain you access to higher borrowing amounts.
· Once an offer is accepted you will provide the estate agent with your solicitor details. You will receive a letter confirming the acceptance. At this point no commitment is invoked on either the buyer or seller, although there should be a moral code of practice in place.
· It is now time to decide on a mortgage, either via a mortgage advisor or directly. Once you have decided on the best mortgage deal you will need to provide the lender with:- 1) Passport* 2) Driving Licence* 3) P60 4) Last three wage slips 5) A bank statement. They will take photocopies of these for their files to protect against fraud etc. At this point you will also pay for the property survey to be done. On any property less than 10 years old a HOMEBUYERS SURVEY is probably sufficient. This costs in the region of £250-300. A more in depth survey is also available for around £400-500. (check with estate agent whether property is Leasehold or Freehold – If Leasehold you pay a small annual ground rent fee).
· Once the survey is complete, and if satisfactory, the mortgage lender should send you an agreement to lend you the money. This usually happens within three weeks of paying for the survey. The survey results will have been viewed by your solicitor giving them the green light to carry out the land registry etc. checks. The solicitor should also draw up a list of fixtures and fittings which are included with the property.
· Providing the owner is still willing to sell at this point, you are now in a position to sign contracts. This is subject to the seller’s chain, but as first time buyers we are in a good position in this area of negotiations. You can sign contracts and agree on a date when you move into the property or move in immediately if no chains are involved.
· The whole process usually takes between 6 and 10 weeks from a suitable property being found and contracts being exchanged.
You will no doubt encounter problems along the way, but be reassured the high majority of them get sorted out with time.
My background is very sport and fitness orinetated, not in my profession but in my lifestyle. I have been a keen sports player since I was ‘knee high to a grasshopper’ and a gym member since college. However, I honestly believe I have never felt fitter than I do at present, at the age of 32 years, 4 months and 8 days! I have recently become involved in http://www.competitiveurge.com/ , a social networking site with a difference – it actively encourages and promotes physical participation. Whilst the site is only in it’s infancy in terms of functionality and useability, I believe in the concept 100% and am extremely excited by the future plans for it. Hope you enjoy.