A Guide To Buying Your First Home.

23 Nov 2024

Our step-by-step guide explains everything you need to know about purchasing your first home and the conveyancing process.

For some first-time buyers, the prospect of jumping on the property ladder can feel overwhelming. To help, we have pulled together a simple purchase process guide for you to follow and check off as you go, ensuring these essential first steps are completed in a stress-free way.

 

Step 1) Speaking to a mortgage broker.

Before we get involved and before the conveyancing process can begin, it is recommended to speak to a Mortgage Broker. A property purchase is often the most significant financial commitment of your life, so it’s essential you’re equipped with the correct information you need.

A Mortgage Broker will help you consider the following:

·      Your Mortgage Rate

·      Your Mortgage Type

·      New Mortgage Products

·      Your Financial Situation

Ultimately, a Mortgage Broker will use their expertise to navigate the Mortgage market, finding you the best possible rate for your circumstances. They’ll work out what you can and cannot afford each month.

You can’t get a Mortgage before you purchase; however you can get a mortgage in principle. Your Mortgage broker will send some of your basic information to a lender. The lender will then perform a credit search and credit score check before coming up with a figure ‘that in principle’ would lend you.

Most Mortgages in principles are free to obtain and can be completed quickly. Many Estate Agents will ask to see your Mortgage in Principle before allowing you to view their properties, so it’s a vital part of the process, and you’ll have peace of mind knowing what you can afford before you fall in love with your dream house.

 

Step 2) Finding your home and making an offer.

Now you have your Mortgage in principle ready; it’s time to start your hunt. It might take a while, but remember it’s important to ask questions on your house viewing; be thorough -after all, it could be your home for quite some time!

Once you’re happy with your choice of property, make an offer!

This offer needs to be made to the estate agent, and they’ll let you know if it’s been received or not. Sometimes, some negotiations may take place before all parties agree on the final amount.

Step 3) Get your Mortgage

Now your home offer has been accepted; it’s time to arrange your Mortgage. This shouldn’t be too difficult as you’ve already got your Mortgage in Principle and Finances sorted before your house search.

Your Mortgage broker will complete all of the necessary paperwork and submit it to the chosen lender, who will need to make you a formal offer. This will need to take place before any exchange of contracts.

You may also want to consider life insurance, wills, and home insurance at this stage. Your Mortgage Broker will be able to help you out with this and may have relationships in place with third parties to get you quotes. (All this can  be sorted throughout the purchase process)

 

Step 4) Instruct a conveyancing solicitor.

Once your offer has been agreed, your mortgage offer has also been agreed; you’ll want to instruct a Conveyancer to handle the legal work, transferring ownership of the property to you.

Details of the Seller will be sent to your Conveyancer via the Estate Agent.

Your Conveyancer will  issue a welcome pack; this will include several forms for you to complete, as an example:

·      Terms and Conditions of business

·      Client questionnaire

·      Fixture and Fittings Form

·      Property Information Form

It is essential you send any paperwork back to the Solicitors as soon as possible, as they won’t be able to move on to the next step of the process without this.

After receiving your initial paperwork back, your Conveyancer will order Searches on your property, including Local Authority, Water and Drainage and Environmental searches on the property you are purchasing.

 

Your solicitor will also be sent a copy of your formal mortgage offer from the lender once they have performed a valuation on the house you are purchasing.

 

Step 5) Consider a property Survey.

Although this isn’t a legal requirement, it’s at this stage, you might want to consider a property survey. The valuation the Mortgage Lender will perform is for them to establish they are happy to lend you the funds for the property. You may want to instruct an additional survey, which will be at an additional cost but will highlight any potential issues with the property, which may help plan future expenses.

 

Step 6) The rest of the Legal process and Exchange of Contracts.

Throughout the process, your Conveyancer will be working through your completed paperwork and liaising with the Seller’s solicitors to ensure that both parties are satisfied. Expect to be sent further paperwork and correspondence throughout the process as they move through the legal process—for example, Reports on titles and Search reports, Title Deeds etc.

Once your Conveyancer is at the stage when all parties in the chain are ready, potential dates for completion (moving date) are discussed. This date will be agreed upon, and mortgage funds will be requested from your mortgage lender.

 

Your final completion statement will also be issued, allowing you to transfer funds to exchange contracts and completion.

Along with all of the above, your deposit will be taken and sent to your Seller’s solicitors.

Once Contracts have been exchanged, all parties are legally bound to carry on with the transaction.

 

Step 7) Completion Day!

On the day of completion, the property is legally transferred to you. Once the Seller’s solicitors have received the purchase funds, they will contact us to advise of the completion and that the keys are available for release.

At this stage, your Conveyancer will arrange for the property to be registered in your name with the Land Registry. This could take weeks or months. Once it is completed, a copy of the Official register of title will be sent to you (and your lender if required)

 

At this stage, your purchase is complete, and you’re ready to move in and enjoy your happy new home. Don’t forget to check out your new local takeaway and enjoy a glass of fizz!

When purchasing a property, it’s important to remember that every situation and case is different. The scenario above is based on a typical transaction we encounter here at Sort Legal.

If you’d like to learn more about the Home Purchase Process, you can download our free guide via the link below.

www.sortlegal.co.uk/services-purchase

We also have plenty of other videos and PDFS for you to download and view.

Tags: home-moving-information | conveyancing | first-time-buyer