A Step by Step Guide for First Time Buyers
Buying your first home can be a complex process. Your home is probably the largest purchase you’ll ever make. At Escritt Barrell Golding, we are here to guide you every step of the way. To help the process, we’ve put together this brief guide to let you know some of the things you need to be thinking about.
Choosing the right property
Decide on the type of property and location you want. You should look around several properties and get a feel for the market before you buy. With a wide range of different types of property across the East Midlands, Escritt Barrell Golding can help you find the perfect home to suit your needs.
How much can I afford?
If you haven’t got a mortgage in place already, your first step should be to talk to a mortgage advisor to work out how much you can borrow and exactly what your repayments will be. We work closely with an independent mortgage advisor who can assist you with this process. Additional costs such as legal fees and stamp duty should not be underestimated. You also need to consider other items such as council tax and utility bills when working out your monthly outgoings.
Do I need a deposit?
The size of deposit you can afford will influence the type of mortgage available to you. Many mortgage companies limit their lending to 95% of the property value, meaning that you need to put down 5% of the purchase price as a deposit. Our independent mortgage advisor will be able to help you find the right mortgage for you and help you calculate the deposit you will need.
Agreeing the sale
Before you sign anything, make sure you know what’s included in the asking price. Check you’re keeping all the fixtures and fittings as listed on the property details. If you like the carpets, see if they’re included, You’ll find that furniture isn’t usually included unless it’s specifically listed. Your offer is still subject to contract – which means that the sale is agreed but isn’t binding until you exchange contracts. For the time being, either side can back out .
Do I need a survey?
Yes – your mortgage lender will require a survey of the property even if it is a new build.
Ask an RICS member to conduct a survey for you. Escritt Barrell Golding are not allowed to offer surveys on the homes we are selling but we can help you find an Independent Chartered Surveyor to carry out an RICS Homebuyer’s Report for you.
If you are buying from another agent, contact us to arrange an RICS Homebuyer’s Report.
There are three types of survey you can opt for:
1. A Full Building Survey – this is often referred to as a structural survey and will give you a comprehensive and detailed report on the current condition of the property. All the visible elements of the property are inspected and any necessary repairs are identified and given a cost estimate.
2. RICS Homebuyers’ Report – This is a pre-printed form prepared by the Royal Institute of Chartered Surveyors. The level of detail of the inspection is slightly less in this report, but it is slightly cheaper.
3. Basic Valuation Report – This report will give you guidance as to whether the price you are paying is reasonable and whether you are looking at a good investment. It does not go into nearly as much detail as a Full Building Survey or Homebuyers Report would do.
Appointing a Solicitor
When buying your home you will need to appoint a solicitor or conveyancer to help you deal with the documentation required for the purchase of your home. Escritt Barrell Golding can direct you to several local firms who will be able to offer all the advice you need.
Exchange of contracts
After all the enquiry forms and contracts have been signed, this is the point at which it’s time to exchange. This is the stage at which the sale becomes legally binding.
On completion day the funds will be exchanged between solicitors and you can collect the keys for your new home from our office.
At Escritt Barrell Golding, we want to make sure that buying your first home is an exciting and hassle-free experience. Our team of experienced sales negotiators are here to guide you through every step of the process. For further information about buying your home we recommend the Royal Institution of Chartered Surveyors www.rics.org