What do I need to do to buy a house?

Question

Can someone give me a breakdown of all the things i need to do to buy a house. E.g. solicitors, mortgage brokers etc. As I don't know where to start and would apprechiate some help/advice. (I'm in the U.K.)

Answer 1

First off, you'll need to go to a mortgage advisor, you'll find one at any estate agents, they will work out how much you can borrow and give you examples of different types of mortgage (don't go for a profits only as you'll end up out of pocket).

You then need to go on to the mailing list of your local estate agents, so that they know exactly what property you are looking for. (that way they will ring you as soon as a property which may suit you comes into their office).

You'll also need a solicitor, again a good estate agent will supply you with a list of solicitors.

Costs vary but your mortgage advisor, will give you a breakdown of total costs such as fees, surveys etc.

I would recommend that you get yourself up to your local estate agents ASAP and see how much you can borrow and the costs that you may incur as you might have to budget accordingly.

Remember that if you are a first time buyer you will get a better deal on your mortgage if you have a deposit, you'll find better deals if you have at least 10% deposit.

Kitting out your house is dependent on what you have already but as a guide for the basics, like furniture, kitchenware, beds etc. you should budget for about £4K

Hope this is of some help

Answer 2

Once you've chosen a mortgage (contact a mortgage broker if unsure about mortgages), then you'll need to factor in the following:

1. Solicitor - I'd probably say something in the region of £800 including VAT and disbursements (e.g searches)

2. Stamp Duty - Non payable on properties up to £125,000. For properties between £125,000-£250,000 you will pay 1% of the WHOLE property cost (not the amount about £125,000). Anything over £250,000 and its much higher.

3. Mortgage application fee - usually £400 but can be more. You can choose to add this to the mortgage balance if you don't want to pay upfront.

3. Mortgage survey fee. You have three levels to choose from - valuation (approx £250), homebuyers (approx £500) and comprehensive (approx £1000). A valuation is a quick inspection confirming the property is suitable as mortgage security, and a comprehensive is an extreme analysis of the building. A homebuyers report is somewhere in between, and used by most people. If you are buying a new property, then you will probably go for a valuation. If you are buying a second hand property, then you'll go for a homebuyers report. If, however, you are buying a really old property - or one which has been modified significantly by its owner (e.g. the owner does his own building work) then you will probably consider a comprehensive survey.

4). Moving costs - if you hire removals people, then it will probably cost in the region of £400. Hire a van/lorry yourself and it will be much less.

5). Any costs involved with customising the property to your requirements, or repairing any defects.

When you exchange contracts, you will normally have to pay 5-10% of the purchase price. Your mortgage isn't advanced until completion - so you can't rely on this. The seller may accept a lesser deposit (if there is a short delay between exchange of contracts and completion, and they don't need the deposit themselves for something they're purchasing) or you'll have to take out a bridging loan, or an insurance bond.

Mortgage brokers usually receive a commission directly from the lender. You will be told at the begining whether this is the case.

Answer 3

First thing you need to do is visit a mortgage broker to see how much you can borrow.

You won't need a solicitor until you've found a place and the stamp duty will be payable to them. The only fees you have to pay up front are the survey (to make sure the place you're buying is worth the money you're paying) and the searches (to make sure a motorway isn't going to built at the end of your back garden).

The stamp duty and solicitor's fee won't be payable until completion.

It's advisable that you get some sort of insurance (life, sickness, accident) so that if anything happens to you, you're mortgage will be paid.

Also you need to get buildings insurance as well as contents insurance.

I know it sounds like lots of money going on nothing, but if anything goes wrong, like you're house being struck by lightening (unlikely, I know!) or a flood or fire, it's vital that you have it.

Once you've found a place that you like, the estate agent will negotiate the price for you with the vendor according to your offers. Depending where you are and where you want to buy, you might be able to offer under the asking price.

It makes sense to have your mortgage agreed in principal when you're looking for places, because then you're in a better position to move quickly.

Answer 4

First locate a house you like, either by yourself or with a buyers agent.

Once you find a place, it's time to get financing.
There are 3 things that banks look at:
Income - how you'll pay the loan back
Credit - your history of paying loans back
Equity - your down payment
These 3 factors will get you a loan. How much and at what rate is a little more complicated.

Once the financing is complete, you close on the house and the loan, and move in!

Hope this helps!

Answer 5

yes, all of the above, also-

when are looking for a house to buy, think of selling it. Every fault is one which will deter future buyers even if you don't mind it. Yes, the home of your dreams but be scientific and ruthless. Do not believe what the agent or the seller tells you.

In every row of houses, every apartment block, there are some with a good position and some not. Eg you do not want a street lamp just outside your gate, or a road drain. Or a power line.

We nearly bought a nice house in a good area but didn't when I found out that it was on the route for all the big council trucks going to their yard.

Answer 6

Money for all of the above. You need to change over your dreaded council tax (BOO) payments, inform the water board, inland revenue, gas, electricity. Estate agents will give you a name/number of a solicitors that they use. However it would be cheaper to get your own. They may also apply for a mortgage on your behalf for £250 once the money goes through. You'll also need a little furniture, a bed, patience.

Answer 7

When you don't have the cash to buy the house outright you have to deal with a bank or a mortgage company. This can be the biggest aggravation of all because they are the biggest liars out there. Remember they are not your friend! They want to make as much money as they possibley can off you! First thing is to shop the different lenders out there. First questions to ask is how much is this loan going to cost me? Get it all up front costs - so you know how much they are trying to F*ck you! I'll tell you - the banks are the sneakiest MOFO out there!

Answer 8

1. go see an independant financial advisor - find out exactly how much you can borrow and how much you are comfortable borrowing.

2. register with local estate agents - doing it via rightmove.co.uk is a good quick way.

3. view a house.

4. put in an offer

5. instruct local solicitor to act on your behalf.

6. have survey done by your lender

7. go in and sign at your solicitors - and choose a date to move on.

Hope that helps - its a simple list but it can be so confusing when you are starting.

Answer 9

You need to speak to a mortgage company or bank to see about a loan. They will pull up your credit rating to see how much of a loan you are eligible for. Once you know how much of a loan you can get then you can start looking for something in your price range.

Answer 10

im currently in process of buying a house. find a good morgage advisor have a chat with them they will tell u all insides andout then apply to see how much your aloud and how much deposit u need to pay i. e if the house ur buying is 100000 and u need 10% deposit you need 10000 to pu down and then fees and valuation fees solicitor fess and look for a house . goood luck