Eager to make that step onto the property ladder? Perhaps you are already a homeowner but are now looking to move into a bigger property, downsize, or purchase in a new area. Investing in property is likely the single-most expensive purchase you will ever make and, in most cases, it will be your biggest asset. For that reason, it’s absolutely vital to get it right. Our comprehensive step-by-step guide is here to guide you in your quest for property ownership.
Step 1 – Secure Your Budget and Finance
Before you even begin looking at properties, the most important question you need to ask is: ‘what can I realistically afford?’ This crucial first step should take into account everything from your initial deposit and mortgage capacity to the various one-off payments and ongoing costs associated with buying and owning a home.
- Deposit: How much of a deposit can you get together? Your savings are the obvious starting point, but it’s also worth considering if you might receive help from family, often referred to as the ‘Bank of Mum and Dad’. They may have put money aside for this momentous step, so it’s a good idea to have an open conversation about your home-buying plans.
- Mortgage: While you can’t get a full mortgage before finding a property, you can and should secure a ‘mortgage in principle’. This certificate from a lender will give you a clear indication of how much you can borrow, making you a more credible and attractive buyer. The amount you can borrow depends on elements like your income, the size of your deposit, your credit score, employment stability, and any existing debts.
- One-Offs and Hidden Costs: Your budget must extend beyond the price of the property. You’ll need to account for Stamp Duty Land Tax, solicitor’s fees, survey costs, and mortgage arrangement fees. Furthermore, budget for the costs of making the house ‘your own’ once you move in. Redecorating, new flooring, or a new kitchen can quickly add up, so it’s wise to set aside an additional 10-15% of the property price for these initial improvements and moving costs.
Step 2 – Determine Your Needs vs. Wants
Once your finances are clear, it’s time to think about what you truly need from a property versus what you simply want. Making a detailed list is a great way to focus your search. Consider key factors like the number of bedrooms, overall size, layout, and potential for a home office.
Think about both your current and future life. If you’re planning to start a family, an extra bedroom and a garden might be non-negotiable. If you work from home, good natural light and reliable broadband are essential. Distinguishing between your absolute must-haves and your nice-to-haves will make your property search far more efficient and prevent you from getting distracted by unsuitable homes.
Step 3 – Research Locations Thoroughly
Location is arguably one of the most critical factors in your decision, as it dictates your lifestyle and the long-term value of your investment. If you’re staying in a familiar area, this is straightforward. However, if you are moving to a new city or part of the country, comprehensive research is essential.
Don’t just rely on online descriptions. Visit your preferred locations multiple times, at different times of the day and on different days of the week, to get a genuine feel for the area.
- What are the transport links like for your commute?
- Are there good schools nearby? Check their Ofsted ratings.
- What are the local amenities like (shops, parks, pubs, doctors)?
- Is the area generally well-kept?
- Check online resources for local planning applications and crime rates.
Step 4 – Begin the Search and View Properties
With your budget, needs, and locations defined, you can begin the exciting part: the property search. Register with local estate agents in your chosen areas and set up alerts on major property portals like Rightmove and Zoopla.
When viewing properties, try to look past the current owner’s decor and focus on the fundamentals: the space, the light, and the structure. Take photos and notes to help you remember each one. In today’s competitive market, you often need to be decisive, but don’t feel rushed into making a decision on a property you’re not completely sure about.
Step 5 – Evaluate the Property Critically
When you find a property that seems perfect, it’s vital to arrange a second or even third viewing. This is your chance to evaluate it more critically without the initial excitement. On your return visit, check for specifics:
- Look for any signs of damp, such as peeling paint or a musty smell.
- Check the age and condition of the boiler and radiators.
- Open and close windows and doors to ensure they work correctly.
- Assess the amount of built-in storage.
- Consider the property’s orientation – will you get morning or afternoon sun?
If everything still aligns with your needs and budget, you are in a strong position to move forward.
Step 6 – Make an Offer (and Get It Accepted!)
If you’re happy with everything, it’s time to make an offer. Decide on the price you are willing to pay and submit your offer to the estate agent, both verbally and in writing. To make your offer more attractive, be sure to highlight your position, for example, that you are a first-time buyer with no chain or that you already have a mortgage in principle. Once your offer is accepted, the property should be taken off the market.
Step 7 – Instruct the Experts: Your Mortgage Lender & Solicitor
With an offer accepted, you need to move quickly. Contact your mortgage lender to begin the formal application process.
Simultaneously, you must appoint a conveyancing solicitor to handle the legal transfer of ownership. Your solicitor will carry out essential searches with the local council and other bodies to check for any planning or environmental issues. Don’t be lured in by cheap online conveyancing deals; these often have hidden costs and can be slow and impersonal. Using a dedicated solicitor’s practice ensures a qualified property professional is handling your case, providing peace of mind during this critical phase.
Step 8 – Exchange Contracts and Make Final Arrangements
Once your mortgage is approved, the legal searches are clear, and all enquiries have been answered, you will exchange contracts. This is the point of no return where you become legally committed to buying the property and will pay your deposit.
Between exchange and completion, you can make final arrangements. This includes negotiating the purchase of any fixtures and fittings from the seller (like curtains or white goods) and arranging to switch the utilities – electricity, gas, water, and broadband – into your name from completion day.
Step 9 – Completion Day
Completion day is the day it all becomes real! This is when the final balance of the purchase price is transferred to the seller’s solicitor. Once the funds are received, the estate agent will be authorised to release the keys to you. You will also pay your solicitor’s fees and any Stamp Duty owed. You are now the official owner of the property.
Step 10 – Enjoy Your New Home!
You’ve done it! After all the planning, searching, and legal work, the time has come to unpack, relax, and enjoy your wonderful new home. Congratulations!
