Are you prepared to carry out your relocation plans? Our step-by-step guide will walk you through the entire process. This includes from budgeting to placing an offer, exchanging contracts, and moving in. Here’s how to get going, with our brief home buying guide.
Selling & Deposits
If you’re not a first-time buyer, selling your home before looking for your next home will give you a leg up on the competition. When saving for a deposit, it’s a good idea to figure out your monthly spending budget. Then set aside a set amount each month.
Individual Savings Accounts (ISA) and Lifetime Individual Savings Accounts (LISA) are tax-efficient savings accounts that can help you maximise your profits. And if you’re a first-time buyer, you may be eligible for considerable bonuses. To open a Lifetime ISA, you must be 18 or older but under 40 years old.
Preparing For Your Mortgage
Before a lender looks at your credit record, you’ll want it to be in the finest possible form. Credit reports give lenders information about your payment history. they use it in their decision-making process. It’s a good idea to look over your credit report to see if there are any mistakes that could harm your score. Your score will not be affected if you check your own rating.
You’ll also need to gather documentation to support your mortgage application. You’ll need a passport, three months’ worth of bank statements and pay stubs. Or alternatively two years’ worth of audited accounts if you’re self-employed, and a passport. Most lenders want at least one utility statement in your name at your current residence. You should also ensure you are on the electoral roll.
Home Buying Guide – Budget
Buying a home is a large step that requires a significant long-term financial commitment. Thus, think carefully about what you can afford. You’ll need to account for your assets, such as savings, as well as the money that comes in and goes out.
Every lender uses a different formula to determine how much money they’ll lend you and whether they’ll lend to you at all. Your salary, the size of your deposit, your frequent spending habits, and your credit score will all be taken into account.
Home Buying Guide – A Mortgage In Principle?
Something to consider. When it comes to searching for, seeing, and making an offer on a house, a Mortgage in Principle is the next step that can make all the difference.
An agreement in principle, a decision in principle, a mortgage agreement in principle, or a mortgage promise are all terms used to describe a mortgage in principle. A Mortgage in Principle, or MIP, is a personalised document that confirms the amount of money that a lender feels they will be able to offer you. This is based on the information you’ve provided thus far. Even though it isn’t a legal requirement, more and more estate brokers are requesting one.
A Mortgage in Principle is unique to you. When combined with your deposit, it can help you choose the price range in which you can look for a home. As a result, you can be more confident in your search for a new house. A MIP is often available within 24 hours and is good for up to 90 days, but different lenders’ criteria and conditions apply.
Location, Location, Location
Take some time to explore and learn about the place you’ve picked. If you have the opportunity, take a walk about the neighbourhood to get a sense of what it will be like to live there. You may also determine how long it will take you to get to the nearest station, store, or complete the school run this way.
Try browsing a bit further along the same rail, Tube, or tram line if you don’t think you’ll be able to buy the home you want in your top choice postcodes. In exchange for a somewhat longer commute, you might be able to find a better value property.
Home Buying Guide – The Hunt
It’s critical to be the first to learn about new listings or even price reductions if you want to get your ideal property. Setting up property notifications is the simplest way to stay on top of what’s coming to market in the regions you’re most interested in.
It’s also worthwhile to indicate your interest in the region by contacting local estate agents in person. If you’ve met, agents are more likely to remember you and keep you in mind when they receive fresh instructions.
Make a list of key questions (how long is the lease, have the owners found a new place to live, how long has it been on the market?) and ask them. so that you don’t forget to ask these questions when you’re looking at houses.
The Offer
Knowing your budget ceiling is critical, so set your upper limit right away. It’s a good idea to inform the estate agent selling the home a little about yourself when you’re ready to make an offer. Make it obvious that you’re a chain-free first-time buyer with a Mortgage in Principle, for example, so the seller knows you’re ready to move forward.
The Mortgage
You’ll need to act quickly now because the seller will want to see progress, so don’t put off getting the surveys and other legal work done. Complete the mortgage lender’s application form and send them the documents they require, which will include proof of identification, proof of earnings, proof of your address for the previous few months, and your bank statements, so have these available.
Surveys
The lender will arrange for a certified surveyor to assess and value the property you want to buy. Also, make sure it’s a property they’re willing to lend against.
Do you want to have more confidence in the state of your home? A basic condition report, a regular homebuyer’s report, the most popular option, or an in-depth building survey, which is normally reserved for highly run-down or very odd properties, are the three levels of survey.
If a survey reveals issues, you may be able to negotiate a price reduction to cover some or all of the work’s costs.
