Buying a house is always an exciting process, but there are lots of things to take into consideration. This is why it is very important to have a clear plan to help you achieve your goal. What are the steps to making an offer on a house? Here is a short guide with quick steps to help you through the process:
1. Decide on your budget
Before you go house hunting, it is best to decide on a budget you are comfortable with. The last thing you need is to fall in love with a house you can’t afford. Deciding on a budget allows you streamline your search and go for affordable houses. Your budget should also factor in the costs of moving home which may include:
- Stamp Duty
- Removal Fees
- Mortgage Brokers Fees
- Conveyancing Fees
- Mortgage lenders Fees
2. Grow your savings
Buying a house is usually an expensive venture for the most of us. If you have enough for the sort of house you want, you can work towards growing your savings before you start the process. It is important you have as much savings as possible to cover the hidden cost of moving and any unforeseen circumstance. If you don’t have enough, start a savings plan, and work on increasing your savings as quickly as you can.
3. Go house hunting
Once you have a budget in mind, it is wise to go and look at houses for sale within your budget. This is usually one of the most exciting parts in the process, but it can become lengthy and stressful if you don’t have a good idea of what you want. Before you start looking at houses, have a list of the must-have features you want in your new home to reduce the number of houses you see. That list could include the number of bedrooms, the size of the garden, the location, size of driveway or garage and so on.
4. Look for a mortgage provider
It is a good idea to look for a mortgage provider as soon as you can in other to get a Decision in Principle (Agreement in Principle). This would give you an idea of how much you could borrow based on your circumstances. HSBC Mortgages have different types of mortgages available.
*Lending is subject to status. Your home may be repossessed if you do not keep up repayments on your mortgage
5. Make an offer on a house
Make an offer once you find the house you like that is within your budget. The infographic below shows you how:
6. Apply for a mortgage
Once your offer has been accepted, the next step is to apply for a mortgage. This process can take a few weeks, so it is important to start as quick as you can once your offer is accepted on a new property.
7. Sort out the legal bits
Legal work is carried out by a solicitor or licensed conveyancer. This stage usually takes a few weeks. The solicitor or licensed conveyancer would carry checks on the new property, manage the contract and completion chain, and collect and transfer the funds.
8. Exchange contracts and get the keys
Once the legal areas are covered and contracts are exchanged, a completion date is agreed and then you can breathe easy until you embark on sorting removal companies, home insurance, utility bills, and more.
Buying a home is an amazing experience and you can really enjoy the process once you have a plan to help you stay on top of all that needs doing.
This is a paid collaboration with HSBC