The Process of Buying a House

Decide on your budget

The first step to buying a house or flat is to decide what you can afford. You will have to think about your existing monthly commitments and what you can afford to pay towards a mortgage every month. It’s important that you don’t overstretch yourself and make sure that your monthly payments will be affordable, even if your circumstances change.

Choose your mortgage provider

Once you have established your budget, you will need to shop around for a mortgage. Once you have found a mortgage that you like, you will apply for something known as a “mortgage in principle”. This will tell you how much a lender is likely to give you and the rate of interest you can expect to pay.

Check your credit report

At this stage, you should check your credit report to make sure everything is up to date and there aren’t any errors. Lenders will look at this when making a decision, so you should check that everything is as it should be.

Find your property

Once you have found a property you like within your budget, you will make an offer, usually through an estate agent. You should only have to pay for an estate agent if you are selling a property, so this stage shouldn’t cost the buyer anything.

The valuation survey

This is a check carried out by the lender to make sure that the property is worth the price that you are willing to pay. It isn’t an extensive survey and it won’t tell you anything that is wrong with the property, it is just to confirm the value for the lender.

The property survey

You will need to commission a survey of the property to make sure that there are no pressing issues that could impact the value of the property. If the survey finds something that will cost £4,000 to fix, then you can use this information to negotiate a better deal on the price. There are three types of surveys that you can request, with different levels of reporting.

RICS Condition Report – This is a basic survey that covers the essentials. It is most suitable for new builds or where the home is in very good condition. No advice or valuation is given.

RICS Homebuyer Report – This is a more comprehensive survey, ideal for homes in fair condition. It’s more detailed and looks at the inside and outside of a property. This type of survey will also include a valuation.

Building/ Structural Survey – This is the most comprehensive and is advised for older homes or homes that obviously need repairs. This will help you to understand if the repairs needed are cosmetic or structural.