Guidance to buying your first home

Buying your first property can be daunting, stressful and painful if you are not prepared and unsure of the process itself. Here we have created a step by step guide to help you understand the process and the actions you will need to take.

Here we have created a step by step guide to help you understand the process:

1. Decide on the budget: speak with an independent mortgage consultant or your bank, so that you know how much you can borrow based on your income.
2. Find a home suitable to your needs: do your research around the area you want to live in, speak to estate agents or new homes builders to help you find the right property for you and discuss your budget, as well as needs.
3. Make an ‘offer subject to contract’ - this is when you make an offer on the property subject to legal work and mortgage being granted – this is not binding.
4. Appoint a solicitor: maybe speak to friends/family for recommendations on a solicitor they have used or search for a solicitor using the Solicitors Register and/ or Find a Solicitor - The Law Society
5. Apply to lender for a mortgage - this is where having a mortgage broker takes the pressure off you, as they will make the application for you and deal with the lender directly.
6. Lender will carry out a valuation of the property: this is a basic valuation for lending purposes only.
7. Once mortgage offer has been received you will instruct your solicitor to start legal work.
8. Solicitor reports back with findings etc.
9. Exchange contracts and set completion date – this is when you agree a completion date and send deposit funds to your solicitor in order to exchange. At this point you will be legally obliged to complete on the property and if any parties withdraw, they will be liable for costs incurred. Ensure that buildings insurance is in place from the exchange date. Many lenders will make this a requirement of the lending.
10. Completion – the day you pick your keys up! The solicitor will call you to confirm that completion has taken place and you are able to pick your keys up to your new home. This is also when your mortgage starts.
11. Pick up keys from estate agent/builder.
12. Move in and enjoy the house!

Buying your first home can make you feel vulnerable, as it is not something you have done previously. Make sure you ask questions and ask your solicitor/broker to clarify anything you don’t understand as you go along – when you don’t know, every question is a valid question. Remember: there is a light at the end of the tunnel and you are one step closer to owning your first house!

Feel free to speak to one of our advisers to discuss your situation and options available to you. 

Please note: this article is intended for applicants in England and Wales. Different rules apply to Scotland.

Although every effort has been made to ensure that the information provided in this article is accurate and correct, the information provided does not constitute any form of financial advice. We recommend that you take financial advice before making any financial decisions.