Buying a new home is an exciting time.
Here are 10 key steps to consider when purchasing your property.
1. Save a mortgage deposit.
You will usually need to save a deposit of at least 5 %
If you are aged between 18-39 you may want to consider a lifetime ISA.
2. Check your credit score.
A poor credit rating can hinder your ability to obtain a mortgage. It is important to obtain your credit score early, a low credit score can be improved overtime.
3. Find out how much you can borrow.
Generally, banks will allow you to borrow a maximum of around four- and- a -half times your annual salary, however this can vary according to the lender. Our mortgage calculator will give you some indication, although we recommend speaking to a mortgage specialist. If you need help, we have access to reputable mortgage brokers.
Mortgage Calculator can be found at camella.co.uk
4. Consider stamp duty costs.
These costs are sometimes unexpectedly higher than anticipated especially if you are purchasing a second home. Our stamp duty calculator on www.camella.co.uk can help you.
5. Budget for other costs such as removals, surveys, and conveyancing fees
Make enquiries early to establish what other fees are needed. Planning can avoid nasty surprises.
6. Obtain a mortgage agreement in principle/ decision in principle.
This is also referred to as an AIP or DIP. It basically means a mortgage lender is in 'principle' willing to lend you the money for your purchase.
Having an AIP/DIP is favourable to sellers, especially when you want to offer on property.
7. Sign up for property alerts on property portals such as Rightmove.
You will receive new to market properties directly into your inbox.
Here is a guide on how to register for property alerts.
8. Go on some property viewings.
Visiting properties will help you understand the type of property and area within your budget.
If you like a property, we recommend visiting more than once and at different times of the day, to avoid potential problems.
9. Make an offer.
Before making an offer, you will need to consider the marketplace.
A 'sellers' market' means there are more buyers than properties for sale, therefore you will need act more quickly and consider how close to the asking price you are prepared to offer. In a Sellers' market some properties can exceed asking price.
A 'Buyers' market' is where there are more properties than buyers. In this case sellers are competing to sell their property, so the buyer may consider a lower offer.
Before you put your offer forward you should explore historic sold prices on websites such as The land registry, Zoopla and Rightmove
10. Instruct a good solicitor.
Congratulations! You have had your offer accepted and this is where the hard work begins. It has been reported that on average 30 % of sales fall through. Using a proactive solicitor will help prevent this. A 'sleepy' solicitor and a lack of communication can delay the sales progression and prevent the exchange and completion.
At Camella we partner with solicitors that have specialists' teams for each part of the conveyancing journey.
