Welcome to the third instalment of simplifying the process for first-time buyers, finding your first home.
In this article you will:
- Navigate the legal aspects: Gain clarity on conveyancing, the role of solicitors, and why property surveys can be crucial.
Finding the Right Property
Having your mortgage pre-approval means you can start looking for a home with confidence. To help with your search, make a list of what you really need and what would just be nice to have.
Think about your budget, where you want to live, how many bedrooms and bathrooms you need, and if you want outdoor space. Also, look out for any deal-breakers that could stop you from buying somewhere. This list will help you stay focused and make better choices when you visit properties.
The Role of Location in Property Value
The saying “location, location, location” is very important in property. Where a property is situated greatly affects its value now and in the future.
Being close to shops, transport, good schools, and parks can make a property more appealing and raise its price. It’s also vital to think about the local economy, job market, and any upcoming infrastructure projects since these things can affect property values long-term.
Investing in a good location that many people want to live in not only makes your life better but could also lead to higher returns on your investment over time.
Making an Offer on a Property
Once you find a property that you like, it’s time to make an offer! Keep in mind that the asking price is usually just a starting point for talks. Look at other similar properties in the area that sold recently to help you decide on a fair offer.
Be ready to compromise, and don’t hesitate to walk away if the seller’s price is too high for your budget. Over-committing financially may cause headaches further down the line.
How to Negotiate the Purchase Price
Negotiating the price for a property takes careful planning and skill.
First, check where the seller stands. Are they eager to sell soon? Have they received other offers? Your estate agent can help you understand these things.
Next, think about your offer. It‘s okay to start a bit below your highest price, as this gives you space to negotiate. Support your offer with facts, showing similar properties and any repairs that need to be made.
Keep in mind that a good negotiation means both sides feel good about the result.
Survey and Valuation
As part of your mortgage, the lender will need to check the value of the property, to make sure it matches the loan amount. A basic valuation gives you very limited information about the property, and often the lender’s valuer doesn’t actually visit the property itself, so it is also a good idea to get a more detailed survey done to find any hidden issues.
Different Types of Property Surveys
Property surveys provide you with important information about a property’s condition. There are different types of surveys that offer various levels of detail.
A Homebuyer Report checks the property’s condition and finds any possible problems that may arise in the future. For older homes or those needing big repairs, a Building Survey gives a detailed look at the property’s structure and its state.
Which survey you pick depends on what you can spend, how old the property is, its condition, and the level of risk you are comfortable with.
The Legal Side of Buying a Home
Conveyancing is the process of legally transferring property ownership from a seller to a buyer. Choosing a skilled solicitor is vital for a smooth and safe property buying experience. They’re there to support you in the legalities of buying a property. They are your legal trusted adviser and support you through the process. They have several key duties, including:
- Title Verification: Checking that the seller actually owns the property and can therefore legally sell it.
- Contract Review and Exchange: Looking at the details of the sale contract before exchanging with the seller’s solicitors. This makes the purchase legally binding for you.
- Searches and Enquiries: A property survey looks at the bricks and the mortar, but Local Authority Searches are a similar check for the ground on which the property sits and the wider area.
- Mortgage Deed: They prepare and handle the mortgage deed. This document secures the loan for your property.
- Completion: They manage the final transfer of funds and ownership on completion day.
It is important to appoint a good quality solicitor/conveyancer during your home buying process. They help protect your interests and make sure the transaction is legal.
Finalising Your Mortgage
After finishing the property surveys and valuations, it’s time to finalise your mortgage and get ready for the exciting journey of owning a new home. This section explains the steps from getting your mortgage offer to setting up your payment schedule.
We will help you with the last stages, making your move into your new home easy.
Mortgage Offer to Completion: What Happens?
When you get your mortgage offer, take your time to read the terms and conditions. Make sure you understand the interest rate, monthly payments, and any fees. If something is unclear, ask your mortgage adviser for help.
Once you feel good about the offer, you’ll be in a position to sign the mortgage deed. This means you agree to the loan and your solicitor will begin to manage the exchange of contracts.
The last step is completion. At this point, the money is moved, the ownership of the property is officially yours, and you get the keys to your new home.
Keen to learn more? Be sure to check out the full series of first-time buyer guides.
Get in touch today to find out more about preparing to get a first-time buyer mortgage.