The house buying process explained

Buying a house can feel like you’re spinning plates. Gain complete clarity on the house buying process with FOMO’s guide!

For many of us, buying a property can feel overwhelming.

Especially if it’s your first time doing it!

From applying for a mortgage and arranging viewings, to exchanging contracts and moving in, there are a lot of steps to consider.

Where do you even begin?

This is why FOMO has broken down the property buying process in an easy to follow, step by step guide.

Step 1 – Work out your budget

How much do you want to spend? How much can you afford to spend? How much deposit have you saved? How good is your current credit score?

Before you dive into looking at properties and arranging viewings, it’s essential you’ve worked out your budget.

Don’t forget, it isn’t just the one-off cost of the property you have to consider. There can be ongoing costs too – especially if you’re planning on undertaking major renovations!

Step 2 – Get a mortgage in principle

A mortgage in principle (MIP) is an official estimate from a lender of how much you can afford to borrow on a mortgage.

Even at this early stage, it’s worth going through a mortgage broker in order to obtain the best available offer.

A mortgage in principle isn’t binding, but estate agents and sellers take them seriously. Therefore any offer you make based on your MIP will be seen as a realistic offer. Offers without a MIP (especially from first-time buyers) may be taken with a pinch of salt.

If you’re at this stage and need a MIP, or just some helpful guidance, feel free to reach out to a FOMO adviser, all our advice is free!

Step 3 – Choose a conveyancer

You’ll need to hire your licenced conveyance (or solicitor) as soon as your offer on a property is accepted. This is why it’s important to have a few options lined up in advance so that you can hit the ground running!

Mortgage lenders have a panel of conveyancers that they are prepared to work with, and only a few solicitor firms are on all of these panels.

This is why you need to have a conveyancer who is listed on your lender’s panel. You don’t want to find out halfway through the process that your solicitor can’t work with your lender!

Step 4 – Find a home you like and make an offer!

View lots of properties, ask lots of questions in the process and make an offer through an estate agent – and be prepared to haggle!

Step 5 – Get your mortgage

Once you’ve made an offer you need a formal mortgage offer to confirm that you really can afford the property.

By using a mortgage broker (like our ones here at FOMO), you will maximise your chances of being accepted the first time – it also gives you access to a greater choice of deals.

A mortgage application takes at least three weeks, but can sometimes take double that. However, the process should be quicker if you already have a mortgage in principle and use a mortgage broker.

The broker will take you through everything step by step (a bit like this guide), so you know what is happening and when.

Step 6 – Nearly There!

Once your mortgage is confirmed then it’s time to agree and sign the contracts, pay the deposit, agree on the moving dates and complete!

It can feel like there are a lot of hoops to jump through in order to buy a home, but the right advice and guidance can make the process a whole lot smoother.

Looking to make that first step?

FOMO’s friendly advisors are always on hand to provide you with free help and guidance.

Get in touch and make the first step to buying a property.

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