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A First Time Buyer’s Step-by-Step Guide to Purchasing Your First Property (From Someone Who Just Did It)

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Buying your first home is an experience that you’ll never forget. However we want to make sure this is for the right reasons!

You see, buying a property can be a complex business.

There are many different steps, some of which depend on completing other steps at the right time. Getting it wrong could seriously delay your house purchase, or add to the overall costs.

As someone who recently bought their first home – and experienced a few hiccups along the way due to my lack of knowledge – I thought it might be handy to discuss these.

I’m not saying that the following step-by-step guide is the only way to buy your first property. But I am saying that based on my own experience this is the process that would have made things run that little bit smoother.

If you’re looking to buy your first home shortly then this guide is for you…

Mortgage Agreement in Principle

Applying for your first mortgage can be an intimidating experience. There are just so many options to consider.

While you could potentially apply for a mortgage after finding a property that you love, this could put you under additional pressure at a critical stage in what can be a stressful process.

My own suggestion would therefore be to take your time before you start looking at properties to find the perfect mortgage. I personally recommend going through an online mortgage broker like Trussle, who work to find you the best deal, without it costing you anything. 

Getting an Agreement in Principle from the lender means you’ve already started the process.

It shows commitment, and can help grease the wheels when speaking to estate agents and vendors.

Nobody wants to commit to house sale only to find that the buyer can’t get hold of the finances necessary.

Conveyancer Selected

While I wouldn’t advise actually hiring a conveyancer until you’ve found a property that you like, it makes sense to do some research.

You may well find that both the mortgage provider and the various estate agents you speak to later try to recommend their own conveyancer. There’s nothing wrong with considering their suggestion at all, but it makes sense to educate yourself about costs and services before signing on the dotted line. 

If you’re in the UK and looking at options then my own experience with Premier Property Lawyers was very positive. You can read my review here.

Property Viewings

With the rather boring steps now completed it’s time for the fun bit – property viewings! 

I found it considerably harder to find the “right” house than I was expecting. Estate agents will try to push anything even remotely relevant down your throat.

Property listings will omit crucial information, like the house we went to see that had a giant football field next door that was about to be turned into a housing estate. No thank you. 

My advice would be to just get out there and start looking. The more properties you see, the better you’ll get at identifying what it is you’re looking for. 

Throughout the process try to be courteous to everyone involved, owners and estate agents alike. There could be multiple buyers interested in a single property, so you want to stand out for all the right reasons. 

Property Offer

So you’ve found the perfect property? Great – time to make that offer. 

If you’re desperate then by all means pay market price. Personally I don’t think you should ever be afraid to make an offer.

The discount you suggest will depend on market conditions and how much you want the property. Personally I offered slightly less and was accepted. If you’re not then keep going until either your offer is accepted or you decide to move on.

While your offer may be accepted, you may find as in my situation, that the estate agent or vendor won’t actually take it off the market until you’ve instructed a conveyancer. That’s why you did your research earlier, so you can quickly instruct a solicitor and get the ball rolling.

Conveyancer Instruction

Get in contact with your chosen conveyancer and hire them. You’ll likely have to fill in a form that legally asks them to act on your behalf in the process of buying a property.

Mortgage Approval

Once you know the property, the asking price and your conveyancer details you can apply for your mortgage properly. 

In truth, I found this part of the process the most frustrating of all, as everyone wanted to know everyone else’s details.

The estate agent wanted to know the conveyancer’s details.

The conveyancer wanted to know the vendor’s solicitor’s details and the lender details.

The lender wanted to know the conveyancer details.

And of course you can’t arrange all that at exactly the same time. 

So the point is – this is where things kick off. I would suggest that offer acceptance, solicitor instruction and mortgage application all happen as close together as possible – on the same day if you really want to be efficient!

The Form Filling Begins!

Once everyone has been instructed you’ll be astonished at the number of forms you need to fill in for the mortgage and the conveyancer. I found it stressful and intimidating at first. Every time I got home from work there was something else that needed doing.

What I can say, based on my experience, is that this mad rush of paperwork only lasts for a few weeks. By this point all parties should have all the preliminary forms they need.

There’ll be more to complete, no doubt, but the rate slows significantly. 

What I’m saying is just suck it up. It might feel like there’s no end but in reality it won’t take long. What I could say is try to free up your weekends for the first few weeks, so you can the spare time to complete everything being fired at you.

Remember that the sooner you can complete and return these forms, the quicker your house purchase will be. Try to answer everything the day you receive it. 

Local Searches

Your conveyancer will carry out local searches to ensure everything is as it should be. These involve requesting forms from the local council, and that can take time. 

There are two schools of thought here. Some people recommend initiating the searches as soon as the conveyancer starts work. This can speed up the process, but could mean you’ve paid for services unnecessarily if the house sale falls through.

Others advise requesting searches later in the process, while accepting this could add some weeks onto the process. Personally I chose the first option.

Surveyor Instruction

Once your searches come back and your mortgage is all approved it’s time to ask for a property survey. This is for your peace of mind, to ensure there are no hideous problems that we mere mortals wouldn’t spot. 

You don’t have to hire a surveyor, but I’d strongly recommend it.

Surveyors can be busy, so it could be a few weeks till they’re available. Furthermore, the vendor or estate agent will need to present to let them in for the inspection. 

Again, therefore, try to plan early. Get some quotes, and some idea of availability. Keep the estate agent and vendor sweet. In this way you’ll be ready to strike as the right time arrives.

Furthermore, take time going through the survey with your solicitor. If anything worrying arises be prepared to go back to the vendor’s solicitor to request that work is completed or to renegotiate the purchase price to account for any serious work needed.

Deposit Paid

Before you can actually become the legal owner of the property you’ll need to pay the deposit agreed with your mortgage lender. This is paid to your conveyancer, while the mortgage money itself will also go to them. 

This is scary – all those savings disappearing.

Be sure to confirm your conveyancer’s account details over the phone with them, to be certain that the details are correct. Furthermore, I would suggest you ring your solicitor the next day to confirm they have received the funds. Things are getting real now!

Exchange

By this point the hard work should be almost done. Your mortgage is approved. Your solicitor is happy with everything. The survey looks clean. Now the contract will be drawn up to effectively transfer ownership of the property from the vendor to you.

These are very important documents so put aside some time to read through them. Ask your solicitor to clarify anything that isn’t clear. Only when you’re happy should these be signed and sent to your conveyancer.

At the moment that these contracts are exchanged you are committed to buying. The penalties for dropping out afterward can be stiff. So be 100% certain you’re making the right move before authorising your solicitor to exchange contracts. 

Completion

There is likely to be a short period of time between exchange and completion. A week seems typical. In this time your conveyancer will arrange for the mortgage money to be transferred to their account. 

On the allotted day, money and paperwork will change hands between the two solicitors and you’ll officially be a home-owner. 

Your conveyancer should contact you to confirm that everything is successfully completed, and to advise where you can pick up your keys. Congratulations!

Have you got any questions about buying your first property? If so, why not leave a comment below and I’ll do my best to answer your query…

Richard

Sun-worshipper and obsessive frugality blogger. For loads more money-saving advice come and join us on Facebook.

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