Buying a house?? Read this (How to buy a house)

Member Name: mazhar68

Product:	How to buy a house
Date:	04/08/01 (490 review reads)
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Buying a house is one of the most important events in a persons life, it can lead you to your dream home and years of happiness or it can result in a financial disaster leaving you (sometimes) with a house which you can neither rent or sell.

I bought my first home about 3 years ago being sick & tired of paying rent year after year & knowing that at the end of it all however much i pay the property would never be mine that's when I decided to buy my own place which would not only be convenient but have it's financial gains aswell.

Buying a property can take up to 12 weeks, although the length of time is reducing.

The most common steps in buying a property & the costs involved are summarised below & then explained in slightly more detail, it's still a good idea to do your own research to get a bit more info.

1- Looking for a house.

2- Getting quotes for a Mortgage.

3- Making a formal offer.

4- If offer is acceted arranging for a Survey to be carried out.

5- Obtaining the services of a soilitor or conveyancer who does all the legal work on your behalf i.e searches, stamp duty, e.t.c

6- If the survey is satisfactory, formally arranging the mortgage & in many cases a deposit although there are 100% mortgages available.

7- Finally your solicitor/conveyancer arranges for you to exchange contracts with the seller.

8- Completion takes place, & you are handed the keys to your property.


1-
The first step in buying a property is deciding it's location, is it close to work? kids schools, shops & other amenities, try and visit the area in different times of the day it really helps.

2-
If you've decided on a house the next step would mean you arranging a mortgage although some people like to get an idea of how much they can borrow before they start to look for properties.
What I found helpful was to get a copy of my credit file
before I applied for a mortgage as any errors on the file may result in being refused a mortgage with the current lender or any subsequent lenders & too many searches close together may look bad on a credit file.
You can obtain your file from a credit reference agency such as Experian they make a small charge of £2.Their address is available at www.experian .co.uk. together with useful info on credit files.

3-
Once you know how much you can borrow you make an offer on the chosen property the above steps can be quiet different for different people i.e you might have seen a property that you really like & you want to put an offer on the property asap & you haven't had the chance to speak to a mortgage provider, (it is possible in some cases although some estate agents may refuse to let you do that).
There are to types of mortgages an Endowment(interest only, has recently had alot of bad publicity) & Repayment Mortgage( paying both the loan & interest).
Within the repayment mortgage there are many different methods available such as
Standard Variable Rate(the lenders standard rate changes as the Bank of England changes it's rates), Fixed Rate (A rate fixed for a particular period of time), Capped Rate (the rate is capped meaning it can go down but not above the rate at which it's capped) Cashback (the lender gives you a percentage of your mortgage to you at the start of the mortgage & the latest flexible mortgages.
Choosing the right one could save you hundreds of pounds
4-
Making an offer on the property involves you deciding the amount your prepared to pay,
normally slightly less then the asking price it's a good idea to give a lower price if your sure there arent many people interested in the house you'll normally get an idea of this from an estate agent.
If there are others interestd and the property is already a good price you can give the asking price as you'll have a greater chance of bei
ng accepted.

6-
Choosing a Solicitor sometimes the estate agent may reccomend one or a you can ask family or friends to reccomend one they used.

7-
There are 3 types of surveys, choose the one suitable for you especially if your paying a high price for the property.

8-
Let the lender know the exact amount you want to borrow & the deposit also ask them to explain the types of mortgages to you. The govermenat has set out guidelines for them known as the mortgage code this ensures that you get good advice.

9-
Exchange contracts so the property is legally yours & wait for completion to take place (when you are handed the keys).



COSTS INVOLVED:
(I've just given a general idea)

1-Deposit (if you decide to pay one)
around 10 to 15%
2-Stamp Duty (on properties over £60000)
1% of the price of the property
3-Survey fees.
around £150

4-Land registry

5-Payment for searches
£100-£200

6-solicitor fees
£200
7-payment for arranging a mortgage.
£175-£200

Summary: