Homebuyers Guide

House Buying Process

It’s normal to feel confused or even stressed at the idea of buying a new home – even experienced home buyers can find it complicated.

To make the task a little easier, we have put together a comprehensive guide to buying a house.

This step by step process is based on years of helping our clients move house with ease, and will lead you through from start to finish.

You may also find it helps you navigate around many of the common home-buying pitfalls that any purchaser can encounter.

1. Decide on your budget

Before you start thinking about the home you want to buy, you first need to settle on exactly how much you can afford. This will in turn affect which types of property you should be looking at.

This must not only include the cost of the house itself, but also the other one-off expenses involved in buying a home and moving. You can find a list of those below.

To calculate your budget, you need to work out:

The amount you will get from the sale of any current home
The amount you can borrow (step four will help cement that for you)
The amount you have available in savings or investments

Once you have done this, work out how much the other one-off costs of buying and moving will add up to. Here is a rough guide:

- Arrangement Fee by the Lender: £500 – £2,000
- Lender’s Valuation: £300 – £1,500
- Survey Costs: £400 – £1,500
- Legal Fees (Conveyancing): £1,000 – £2,200 (including disbursements)

Stamp Duty (SDLT) for First-Time Buyers:

- - 0% on properties up to £300,000
  - 5% on the portion between £300,001 and £500,000
  - No relief for properties over £500,000

Stamp Duty (SDLT) for Non-First-Time Buyers:

- 0% on properties up to £125,000
- 2% on the portion between £125,001 and £250,000
- 5% on the portion between £250,001 and £925,000
- 10% on the portion between £925,001 and £1.5 million
- 12% on the portion over £1.5 million
Local Authority and Other Search Fees: £250 – £450
Removal Fees: £300 – £1,500
Contingency Fund: 5-10% of the property’s purchase price
Mortgage Broker Fees (if applicable): £300 – £500
Home Insurance: £15 – £35 per month

Subtract the second figure from the first, and whatever is left will be about the amount you can spend on a deposit.

For more on this, our handy guide will give you a great framework for working out how much you can afford on a property.

2. Choose the area you want to live in

When choosing an area to live, it can be useful to ask yourself what you want from the area to help narrow it down. Questions like:

What are the transport links like?
Do I want to be closer to work or my child’s school?
Do I want to live near the city centre, or the suburbs?
What is the selling history of properties in that area?
What is the crime rate like in the area? This UK crime map can show you

We then recommend researching each part of an area before viewing properties. For example, somewhere that’s close to your office may also be student-dense, which might not suit you.

Remember that although you can make home improvements it is more difficult to change the neighbourhood.

Although the internet is a great tool for searching through a vast quantity of properties and areas, simply touring the area can give you a good idea of what it is actually like.

3. Choose what kind of home you want to live in

Now you can start considering what you want from your new home.

Good questions to start with could include:

Is a garden important to me?
One toilet or two?
How many bedrooms will I need now and in the future?
Do I want a home office?

4. Start looking at mortgage deals and get an agreement in principle

It can be useful early on in the homebuying process to start looking at mortgage rates and comparing companies.

Once you’ve settled on the best one for you, it can be useful to get an ‘agreement in principle’ (AiP) – sometimes called a ‘mortgage in principle’. While this isn’t an agreed mortgage deal, it’s the lender saying that they could lend said amount in principle.

AiPs are useful to give you an idea of what your maximum possible loan would be, as it may differ from what you have budgeted. It can also often convince the vendor that you are a genuine purchaser and put you in a better position to negotiate.

5. View properties

Now, the fun part. You can start searching to find properties that suit your criteria.

While scrolling pictures and watching videos can inform which properties you want to view, it’s still important to view properties in person where possible.

Viewing the houses in person will give you a better sense of the surrounding streets, as well as more insight into the property itself. It will also give you the opportunity to take a look at the property in greater depth, from signs of damp to which way the house faces, and ask important questions to the homeowner or estate agent.

6. Make an offer

Once you’ve set your heart on a property, you can put an offer in. Before deciding what to offer, it can be useful to check what nearby homes have recently sold for, this will help determine if the property is over or undervalued. This information is free and readily available from the Land Registry.

You may also want to find out how many offers have been made, to ensure you don’t offer too low and risk losing the property. However, do stick within your predefined budget.

7. Apply for a mortgage

If your offer has been accepted, it’s time to go back to the lender that gave you the AiP (or a different lender if you’ve found more competitive rates) and apply for your mortgage. If your mortgage is accepted, your lender will make you a mortgage offer.

8. Find a solicitor (or conveyancer)

If you are a first time buyer, you will not have to worry about selling your property before you can proceed, but you will still need to find a solicitor or conveyancer to carry out the conveyancing on the purchase.

Conveyancing comprises the following tasks:

Obtaining the deeds which legally prove the property belongs to the person who is selling it
Researching where the property’s legal boundaries lie and passing this information on to the buyer
Preparing a fixtures, fittings and contents list which makes clear what exactly will be included and excluded in the purchase price, for example white goods or carpets
Asking the vendor whether they are aware of any issues with the property that the buyer should know about
Advising the buyer on a draft contract for sale prepared by the seller’s solicitor that sets out the terms of the purchase
Carrying out a search of the local planning information to uncover details of any future developments which could affect the properties value.
Agreeing a date for the completion which is suitable for both the buyer and the seller.

Conveyancing often takes longer than expected, but try to be patient as it is a very important process.

9. Settle on a survey

A survey is needed to assess the property’s condition and value.

Your mortgage lender will require at least a basic valuation before approving any loan. There are three main types of property surveys you can choose from, depending on how in depth you’d like it to be.

Any surveyor that is used should be a member of the Royal Institute Of Chartered Surveyors (RICS) or the Incorporated Society of Valuers and Auctioneers (now merged with RICS).

Where the survey does reveal a serious problem, you are free to withdraw your offer. If the problems can be fixed, you may be able to use the survey results to negotiate a reduction in the sale price.

10. Exchange contracts

With the survey completed and the lender happy with it, your solicitor can draft contracts ready for you and the vendor to sign.

At this point:

Your solicitor should have completed all of the local searches, the surveyors report should be complete and have been accepted by all parties.
You should have a formal mortgage offer in writing which you have read and understood
You have the agreed deposit available.
You have agreed a firm completion date for the sale, this is noted in the contract and there are no outstanding issues remaining to be settled between you and the seller.

When you have signed the contract, your solicitor will deliver it to the seller’s solicitor in exchange for the contract the seller has signed. From this point both you and the seller are legally bound to the deal.

11. Start planning the move

Once you have an agreed date of sale, you can start making arrangements for moving day. This could include organising a removal company (if needed), as well as practical things such as ensuring your pet has somewhere to spend the day when moving.

You can start boxing up all your things. The best way to do this is to decide what will be going where in your new home and then label each package with a list of the contents and where you want it to go.

Remember to pack essentials, such as bedding, and anything else you’ll need for your first night, where you will be able to find them quickly and easily.

In the final few weeks before moving, contact utility providers to let them know you will be moving out and arrange for readings to be taken. You may also want to contact the post office so they can re-direct any future mail and the council will need to be notified so you are not liable for council tax at your previous address.

12. Complete the sale

This is when the house officially becomes yours. Your solicitor will receive the funds from your lender, and any remaining funds from you, in order to pay the seller. You should also receive the deeds to the property.

This and any other paperwork is exchanged between your solicitor and the seller’s solicitor.

13. Move in

Congratulations – you’re in! Now it’s time to start unpacking and make your new home truly yours.

Finding your new home in the North

Did you know the North East has some of the lowest property prices of anywhere in England? That’s despite the fact that it’s home to…

✅Over 100 miles of golden coastline

✅Northumberland National Park

✅One of the UK’s most vibrant cities – Newcastle

✅Historic Durham, Hadrian’s Wall and over 70 castles

If you’re considering making the move to this culture hub, browse our properties for sale in Newcastle.