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Posted on 03 July 2020

Our Step by Step guide on purchasing your first property!

Why some property professionals expect you to know everything about the process of purchasing a home is beyond us!

Conveyancing? mortgage lenders? Title documents? When can or can’t we put forward an offer on a property? This isn’t something we’re taught in school so why do they act like it!
Don’t worry, we’re here to simplify and explain.

Below we have left bullet points with short explanations to help guide you through the process of purchasing a property.

 

  • First things first! Decide you want to move (very important)
  • If you would like to purchase through a mortgage, this is something you should look into right at the start of the process. We recommend you speak with your bank and speak with a mortgage broker separately to compare rates and see how much you are able to borrow. Both your bank and the broker will ask if you want an AIP (Agreement in Principle). This is documentation confirming how much you are able to borrow. We would also advise you to only secure an AIP when you have decided on who you are getting your mortgage with.
  • After you know how much money you have to play with, you are now able to start looking at houses!
  • If you’re purchasing with ‘cash’ you will be asked by the Estate Agent to provide proof of funds, however, other than that you can start putting offers forward straight away.
  • When you have found a property (within budget), as you have your Agreement in Principle (confirmation of how much you can borrow) you are able to put forward an offer on the property.
  • After all the back and forth and a price has been agreed you will then need to find a solicitor. The solicitor is appointed to handle all the legalities from organising the transfer in funds all the way to the transfer in ownership. Please note that having a solicitor appointed is a vital part of the process as they also do the due diligence in making sure there are no legal issues in or surrounding the property which may cause problems that have cost implications in the future.
  • After appointing your solicitor, they will communicate with your mortgage lender, seller’s solicitor, and you in order to complete your transaction. (Please note that your solicitor may require payment for their services during the process in order to acquire information from third party organisations needed to complete the transaction). These payments are known as ‘disbursement’ and would be listed in the quote you would receive before instructing the solicitor.
  • When the solicitor has finished collecting all the legal documentation and you are happy to proceed with the property, they will then assign an Exchange & Completion date. Your Exchange date is when you are legally bound to go through with the transaction and your completion date is when the Title Deeds are switched into your name and you are now officially the new property owner!