Establishing your approximate budget is essential before you can even begin your property search. When understanding how much to spend you will also need to allow for the associated costs with buying. These include surveyor, mortgage and conveyancing fees.
How do I establish my approximate budget?
You will need to consider a number of factors:
Now that you have an estimated budget you can begin to search for a property. Be aware depending on the property you purchase there may be other additional costs, which will increase the total cost of the buy.
What are the possible additional costs?
A Mortgage offer in Principle
Before you begin viewing any properties you should obtain a mortgage offer in principle. This will give you a real figure of how much you can borrow. So where do you start? The obvious choice is to go into your local high street bank. However keeping in mind that they are individual lenders and therefore under obligation to offer you their product only.
So what do President Properties advise?
We recommend that you use an IFA (Independent Financial Advisor). IFA’s are not tied to nay one lender therefore they can search the entire market of mortgage lenders including banks and building societies to find the best mortgage which is tailored to your specific needs. Call one of our representatives on 020 8676 6292 for a recommended IFA.
When you make an offer you are advising the seller that you are interested in buying the property. President Properties will then let the seller know of the offer made. We will negotiate between you and the seller to reach a final agreed price.
A few point to take into consideration before offering on a property:
Use your judgement to estimate how strong your position is. If you are cautious when you are not in a strong position then you may lose the sale for holding back on what could be a small amount of money. Remember the budget that you set yourself and stick to it.
Agreed Price
So your price has been agreed, make your offer formally in writing or an email then the next step is to instruct a solicitor to organise all the conveyancing. Remember you are not legally bound to proceed with the sale until a survey has been completed and contracts have been exchanged.
So you are now satisfied with the condition of the property you propose to buy and your lender has agreed the price then you need to finalise your mortgage. At this stage you need to think about the time that this will take, this is dependent on both your circumstances and those of any other parties involved in the mortgage.
What circumstances are being referred to?
What is President Properties advice?
Communicate with your lender as much as possible this will ensure the process is as fast as it possible can be. Once all the lenders needs are satisfied they will issue a letter to your lender to confirm you have the funds to purchase the property.
Why?
Before the banks will lend any money they will need to be sure that the property is worth the money that you have agreed to borrow. This is because the bank technically owns the largest portion of the property until you have paid off the mortgage. Obtaining a mortgage will also ensure that you are fully aware of any problems with the property that may be costly to resolve further down the line. If you are unsure of what survey to obtain president properties has provided a full explanation of available surveys, valuations and suggestions of which one is right for you dependant on the property you buy on www.presidentproperties.co.uk
Conveyancing is the term given to the legal process of transferring ownership of the property form the seller to the purchaser. You will need to instruct a solicitor to organise all this and the process can take up to three months therefore its best to instruct one as soon as possible. Both the seller and the purchaser are required to have a solicitor to carry out their side of the sale. The process tends to be simpler for the purchasers side than the sellers.
Buying a property you are taking what is likely to be the largest commitment financially in your life. Considering the length of time that you are taking a mortgage for it is important you think about taking protection should there be a change in circumstances. There are a number of different insurance policies that you need to consider when buying your new home: