There are only a few significant steps you need to take in order to purchase a property- from start to finish. I’m going to avoid mentioning all the if’s and buts because there are potentially thousands of different issues that can crop up and sway the entire journey of buying a property.
Please bare in mind, external organisations like Conveyancing Solictors and Mortgage Lenders may work in a slightly different order to what I’m going to list. However, the steps are almost always in the sequence at some stage.
1) Get your finance sorted
The first step is definitely sorting out your finances. There is no point finding your dream home and not being in the situation to purchase. You can get more information on Mortgages in my Mortgage tips section. Don’t accept any loans at this point, just get one pre-approved so you’re ready.
2) Conveyancing Solictor
You will need a conveyancing solicitor to sort out all your paperwork, including the exchange of contracts. Shop around and get the best rate. It’s amazing how much prices can vary from Solicitor to Solicitor.
3) Finding your dream home
Whether it is through an Estate Agent, Auction or a private sale, you need to find your home.
4) Inform your lender
If you’re borrowing money, agree to the most suitable loan you were offered. Most people work with Mortgage Brokers, if that’s the case, you will need to inform him/her.
5) Structural Survey
Usually at this point, the property you plan on purchasing will need to undergo a structural survey. The Mortgage lender will normally arrange this for a fee, as they won’t want to finance a building that’s about to fall down.
6) Building Insurance
Again, your Mortgage lender may need you to arrange some form of landlord building insurance before they’re willing to lend you any money. In fact, most will insist on it.
Don’t worry, Landlord BTL Insurance really isn’t that expensive.
Please note, if you’re buying a property with the intention of letting it, you will need Landlord Insurance policy, as opposed to a regular residential Building Insurance policy. Failing to get the correct type of insurance can invalidate your policy.
7) Inform your Conveyancing Solicitor
Let your conveyancing Solicitor know about the property you plan on purchasing, and pass on all the required details.
8) The ball is in motion
From here on, it should be a matter of constant communication between you and your Solicitor and your Estate Agent. You will need to fill in various forms from your solicitor. There maybe a long pause here, as a lot of local searches will be undertaken- these will be instructed by your solicitor. Remember, you may have to pay some fees from any point here.
9) Prepare to exchange contracts
Your solicitor will inform you when all the searches are completed, and both parties are ready to exchange contracts. You will be given a specific date.
10) Paying the bill
Your solicitor may request for your deposit and your stamp duty fee at this point. Some Solicitors may even ask for their fee at this point.
11) Exchanging contracts
The time is here to exchange contracts. Just sign on the dotted lines (make sure you read everything before signing)!
12) Paying the final bills
You may have some outstanding bills; everything should be settled at this point.
The time has come. The contracts have been exchanged and your fees have been paid. You should be ready to pick up your keys to your new property.