Finding your dream property
The average house purchase can take anywhere between 6 weeks and 8 months, so it’s very important that you find your ideal property within your budget that you are willing to go the distance for. Timescales vary depending on how many people are in the buying and selling ‘chain’. For instance, a first-time buyer purchasing a new build with no chain is more likely to have a quicker purchasing process than a person selling their current home who wants to move into a home occupied by another individual. Remember to be patient and keep in mind that the deal is not completed until contracts are exchanged.
Financing is probably one of the most important aspects of buying your dream home. Make sure you can afford the property you want and secure the funds you need through your own savings (for your deposit), and your mortgage lender (for the remaining sum). Do your research and make sure you can borrow enough money depending on your income. Ensure that your monthly repayments on your intended mortgage are affordable. You’ll also be more attractive to mortgage lenders and estate agents if you’ve got an agreement in principle.
When you’re thinking of making an offer, bear in mind the additional costs you’ll need to cover as part of your house purchase, including stamp duty, legal fees, arrangement fees (for a lender to set up your mortgage) and the cost of removals. You may also want to consider how much money you’ll need to spend on the property to make it your own, such as decorations and renovations. You should always ask the seller for a full list of the fixtures and fittings that are included with the property as part of the sale. For more advice on legal and arrangement fees when it comes to setting up a mortgage and moving house, submit an enquiry to us at iam mortgages using our simple form.
After your offer is accepted
When your offer has been accepted, it can be a huge relief. There’s still a long way to go though, and you should always bear in mind that until contracts are exchanged, either party can still back out of a sale. Be prepared for either ‘gazumping’ or ‘gazanging’. ‘Gazumping’ happens when another buyer makes a larger offer on the property you intend to buy, meaning that the seller accepts their offer and backs out of yours. To avoid gazumping, you could ask that the vendor takes the property off of the market following acceptance of your offer. Not all sellers will agree to this, though. ‘Gazanging’ happens when the seller changes their mind and pulls out of the sale. Unfortunately, there is always a risk that this could happen and the situation is largely out of your control. The only thing you can do is push your solicitor and mortgage lender to hurry things along so you can complete as soon as possible.
When your offer has been accepted, you should look for the best mortgage deal available to you. Remember that if you get an agreement in principle, this expires after 90 days, so make sure the duration of the agreement will last long enough for you to secure a mortgage with a lender. Compare the market and don’t just go to the first lender or bank you find – shop around and compare rates to ensure you get the best deal. If you have a good credit score, you may have offers from more than one lender. When you have secured your mortgage deal, make sure you get a personalised mortgage illustration detailing the key features of the deal you’ve signed up to. To compare mortgages or for expert mortgage advice, contact us at iam mortgages today. We will happily answer any questions you have about finding the right mortgage deal for you.