The home buying guide
Most of us don’t regularly buy a new home, so it’s no wonder the home-buying process can seem a little confusing at times. However, it’s not as complicated as it can seem. We’ve laid out the steps below to guide you through buying a home.
Ready to become a homeowner? We’re here to help you every step of the way. Read on to learn about the homebuying process, from saving for a deposit and making an offer to exchanging contracts and moving in.
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The homebuying process
Below is a breakdown of the most important stages of the homebuying process to ensure a stress-free move.
1. Know what you can afford
Before you start house-hunting, it’s a good idea to determine how much you can afford. Consider your ideal property type and location to help you budget for your deposit.
Use our Mortgage Affordability Calculator and read our guide to What Mortgage Can I Afford to get started.
2. Save for a deposit
The next step in the homebuying process is saving for a deposit. The larger your deposit, the better the mortgage deals and interest rates. Larger deposits can:
• Help you secure a lower interest rate and monthly repayments
• Help you cover other costs of buying a house, including Stamp Duty, survey and legal fees
• Help you kickstart your home renovations
Struggling to save for a deposit? Our low-deposit schemes can help you get on the ladder quickly. Our guide to saving for a deposit has helpful tips and guidance.
3. Get an Agreement in Principle
An Agreement in Principle (AIP), also known as a Mortgage in Principle (MIP) or a Decision in Principle (DIP), outlines how much you can borrow from a lender. Lenders usually run credit checks beforehand to understand your financial situation.
You can get an AIP online or at your preferred lender’s branch, and you should receive the results within 24 hours. Getting an AIP doesn’t guarantee that your mortgage application will be accepted, but it increases the chances and shows lenders that you’re serious about buying.
AIPs are typically valid for 90 days.
4. Make an offer
Have you found your dream home? Next, it’s time to make an offer. This is an important step in the homebuying process and is typically done by an estate agent. Consider the following before you make an offer:
• Don’t propose more than you can afford – factor in all the extra costs on top of your mortgage so you can comfortably make the monthly repayments.
• Get fixtures and fittings in writing – ask the seller to include everything they’re leaving in the house, from light fittings and carpets to kitchen units.
5. Apply for a mortgage
Having your offer accepted is a huge milestone, so congratulations! Now, you’re ready to apply for a mortgage. Navigating the different mortgage types can be daunting, so working with a lender or mortgage broker can help. They have expert knowledge of the property market and can secure the best deal for your unique situation.
The mortgage application process can take a few weeks, as it involves checking your credit record and valuing your property.
6. Start the legal work
Solicitors and licensed conveyancers play a key role in the homebuying process. Some of their responsibilities include:
• Checking the property’s legal title
• Managing the exchange of contracts and completion
• Collecting and transferring money
• Conducting property searches, including local authority, environmental and drainage
• Transferring the property ownership from the seller to you
Our guide to the legal steps of buying a house includes plenty of guidance on the conveyancing process.
7. Arrange a house survey
The lender will conduct a valuation survey to assess the property and estimate its value. This is to ensure it’s safe for them to lend you the money. You may want to arrange a house survey with an expert surveyor. While this isn’t mandatory, it’s highly recommended as it can help you spot significant faults before committing to the purchase.
The three types of house surveys are:
• Condition Survey (Level 1) – a general overview of the property’s conditions
• Homebuyer Survey (Level 2) – a more detailed survey of the property’s inside and outside state
• Building Survey (Level 3) – the most comprehensive type
If the survey identifies major issues, you could renegotiate the selling price to account for the extra costs.
8. Exchange contracts
Once you receive the survey report and are happy with the results, you can finalise your mortgage. This part of the homebuying process is crucial, as it can bind you to the purchase. Your solicitor will usually leave you seven days to make the decision.
If you’re ready to proceed, your solicitor will send you a copy of the contract. It’s important to read it carefully to ensure that all details are correct. Once you’ve exchanged contracts, you’ll need buildings insurance. This protects you against the costs of repairing and rebuilding your home in case of damage.
Read more about how long it takes to exchange contracts in our comprehensive guide.
9. Complete and move in
The homebuying process ends with a completion day. It usually occurs two weeks after exchanging contracts, but this may vary. Completion means you’ll receive the keys to your new home. So, relax and enjoy!
If you’re unsure what to pack, we have plenty of moving day tips and a handy checklist to help you get organised.
Browse brand-new, energy-efficient properties across the UK. These include modern 2 bedroom to 5 bedroom homes for all homebuyers.
Discover unique offers for a hassle-free move. Contact our Sales Advisers today to kickstart the homebuying process.
Home Buying FAQs
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The steps of the house buying journey involves the following stages: get your finances in order, find your ideal home, find a solicitor, reserve your home, arrange your mortgage, get a valuation & survey, complete legal work, exhcnage contracts, complete & move in.
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The time it takes to complete a house purchase can vary, but typically takes between 8-12 weeks.
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The deposit required for buying a house can vary, but it is usually around 5-20% of the property's purchase price.
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The longest stage of the house buying process is often the legal process of conveyancing, which involves searches, surveys, and checking the legal ownership of the property. It can take several weeks or even months to complete this process.
Help to Sell Schemes
We have a range of schemes to help you sell your existing home.
Parent Power
Parents can also help. Typically they (or a close family member) could help you with your deposit, or guarantee your mortgage, or act as a joint applicant.
Low Deposit Schemes
If you have a low deposit, we have a variety of schemes to help make moving more affordable.
Key Worker Scheme
We could help make your move with our Key Worker Deposit Contribution Scheme.
Own New - Rate Reducer
Own New - Rate Reducer is a brand-new scheme available on new build homes that could mean lower mortgage rates and reduced monthly payments.
Part Exchange
We could be your guaranteed buyer. No stress or fuss, just an easy move for you and your family.
