Whether you have been renting your home or you’re flying the nest for the first time, buying a property is a big step for most.
It can be a stressful, overwhelming and utterly over complicated.
Before you start to question yourself and decide to move back home with your parents forever, here is a run down of the mortgage process.
- Find out how much you can afford
There’s nothing worse than finding your dream home, only to realise it’s massively outside of your budget. Bank and Buildings Societies not only look at your income, but they also assess how much you can borrow based on your current credit commitments and expenditure.
2. Start Property Hunting
Just because you’ve viewed a property, doesn’t mean you have to buy it. Take a look at other properties in the area and get a feel for the type of home you may want. Remember to keep your budget in mind though. When you do find a home, try and view it under various weather conditions and at different times of day. The street may be quiet at 11am on a Wednesday morning, while everyone is at work, but come 6pm on a Friday, it could be very different situation.
3. Getting an Offer Accepted
You’ve found a property you like, now’s the time to make the offer. You’re more likely to have an offer accepted if you are prepared. Approaching the estate agent with an accepted Decision in Principle (DIP), proof of your deposit and solicitors in place, stands you in good stead if you are facing competitive offers.
4. Securing Your Mortgage
Time to put your full application to the mortgage lender. As well as checking your credit profile to fully assess that you are a sensible borrower, the lender checks the property to ensure it is acceptable to lend on. This is carried out in the form of a valuation report. When all checks have been made and the lender is happy, they will produce your mortgage offer.
5. Home Stretch
Once your mortgage offer has been approved, it lies with your solicitor to arrange completion. They will instruct local authority searches and arrange with the seller’s solicitor for a completion date. At this point, it’s recommend that you start to look at insurances. The only compulsory insurance, insisted by your mortgage lender, is buildings insurance. But, it is worth protecting yourself and your family in the event of death, being diagnosed with a critical illness or being out of work, through accident, sickness or unemployment.
Now you know the basic process involved in most home purchases, what’s stopping you getting on that property ladder?
