Six steps to buying your home

The usual six steps to buying your first home in England and Wales:

1. Find out how much you can afford to borrow (deposit + mortgage = home price). Get mortgage offer 'in principle'. The amount you can borrow will depend on your income and monthly credit commitments. While it's possible to get a mortgage that covers 95% of the purchase price, lower rates are available if you can also make a contribution. You will also need to consider the upfront purchase costs such as survey fees, legal costs and stamp duty.
   
   Mortgage options available
   
   
2. Find your home. What you want and what you can afford are unlikely to match. It's said that location is the most important consideration in home buying and you certainly need to decide where you want to live - and the type of property you want. Things you'll need to consider include: house or flat, how many bedrooms, whether a garage is important, garden size, schools, shops - the list goes on. You might like to consider a list of 'essentials' and a list of 'preferables'. Once you've decided on the area, ask a number of local estate agents to send details of suitable properties.
   
   Viewing checklist (PDF download) |
   Start a contacts checklist (PDF download) |
   Countdown checklist (PDF download)
   
   
3. Make an offer. When you've found the right property, make an offer through the estate agent. Remember, the sale price is what the seller hopes to get, not necessarily what they realistically expect - and you may be able to agree a lower price. Your offer should be 'subject to survey and subject to contract'.
   
   How to make an offer (PDF download)
   
   
4. Finalise mortgage with lender. The mortgage that was approved in principle now needs to be arranged based on the home you want. The lender needs to know that the property is worth the amount being lent, and will arrange for a valuation report for you that you may have to pay for. NatWest offers free valuations with certain mortgages. We recommend that you also arrange a further, more in-depth survey (at extra cost).
   
   About the survey  
   
   Also ensure you have protection.
   We strongly recommend that you have life insurance as well as accident, sickness and unemployment cover in place when you take out a mortgage. You'll also need to insure your new home and belongings. Call Mortgages Direct on 08000 969 527 for further information.
   
   Insure your new home
   
   
5. Appoint solicitor/conveyancer. Conveyancing is the legal transfer of a property from one owner to another and it makes sure that the property to be purchased has proper legal title. Conveyancing also involves carrying out all the necessary land searches to check for past and potential problems.
   
   

   There are three main stages involved in any conveyancing transaction:

   1. Sale agreed
      Includes enquiry forms, preparation of contract, negotiation of the moving (completion) date, payment of money on account, searches etc.
   2. Exchange of contracts
      Includes receipt of deposit, approval of transfer deeds, contract and deposit to seller's solicitor, preparation of transfer and mortgage deeds, arrangement of final searches, preparation of final accounts.
   3. Completion
      Includes payment of balance of purchase price and settlements, handover of deeds, payment of Stamp duty, registration at Land Registry.
      
      Using a solicitor 
      
      
6. Move in!
   
   People to tell checklist  (PDF download) |
   Insure your new property
   
   

Please note that the steps outlined here differ for home buyers in Scotland. We suggest you call into your local branch, contact your solicitor or call Mortgages Direct on 08000 969 527 for further information.

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