We have our deposit sorted, what’s next?
First and foremost, it is essential that you arrange your mortgage in principle so that you actually know that you are good for the loan, knowing how much your monthly payments will be and what price you are able to comfortably buy at. Click here to arrange an appointment with Mortgages Direct, they are based in Paignton and have access to a wide range of mortgage products. They will even come to your house if you live in the South Devon area.
We have our mortgage agreement in principle (AIP), what now?
Now that you know what price you can go to, it’s time to start your property search. Click here to view all of our available properties! When booking your viewings, try to allow an hour in between each appointment to allow enough time for travelling and to get a decent look at each home!
We are interested in a property and we want to make an offer…
You’re probably thinking it’s all a bit of a minefield as you haven’t been in this situation before, but it’s really quite exciting! Once you have thought about the price that you wish to pay for the property, submit it to the agent. Once your price has been agreed by the vendor, it’s time to start the ball rolling. It is advisable to now start looking at your conveyancing / solicitor options. Click here for a FREE no move no legal fee conveyancing quotation.
My offer has been accepted, how do I start the ball rolling?
The estate agent will firstly ask you for identification for the Money Laundering Regulations 2007, in form of photographic ID and proof of address dated in the last three months. Now that you have chosen your conveyancer / solicitor, the estate agent will now ask for their details. The estate agent will also ask how wish to purchase the property, and you will have the details of this on your Agreement in Principle certificate. Once the estate agent has all the information that they need, they will then submit it in writing to all parties concerned. It is strongly advised that you then get in touch with the mortgage broker to arrange for the final paperwork to be completed and to get the mortgage valuation paid for. Once you have done this, provide a cheque to the solicitor for payment of the searches. It is the searches and mortgage offer that usually hold things up, so get this done in the first week of the sale to ensure that you move in a reasonable timescale and to show your commitment to buying the property!
The sale has been proceeding and we are nearing the end…
A completion date can only really be spoken about as the purchase gets to the point where the mortgage lender has agreed to lend the money to you, this is called the ‘mortgage offer’, and when the searches have been received by the conveyancer / solicitor. A completion date will be agreed by all parties involved in the chain, and the conveyancer / solicitor will obtain signed contracts before taking your deposit for the property. Once everything is satisfactory, the conveyancer / solicitor will ‘exchange contracts’. This is the point of no return and there is usually a week in between this and the completion date. It is at exchange of contracts that removals should now be booked, for a FREE quotation, please click here.
The moving day is here, what’s left to do?
Congratulations with the purchase of your new home! Get in touch with the energy suppliers for your new property and submit your own meter readings. In the evening, sit down on the living room floor with a beer or glass of wine and a takeaway and enjoy!
IFA (independent financial advisor) – This is someone or a company that deals with a wide range of financial products including mortgages, insurance, wills etc.
AIP (Agreement in Principle) – This is a document stating that an amount of money has been agreed to be loaned, subject to the submission of the information that has been mentioned already, and mortgage valuation. For example, the lender will want to see actual pay slips and bank statements along with a surveyors report for the property.
Survey or valuation – There is a slight difference between these two. There are generally three levels of survey, these are a straight forward mortgage valuation, a homebuyers report which is more in depth than the valuation or a full building survey which is an intense survey aimed at properties requiring major improvement.
Mortgage Offer – This is when all of the above has been satisfied by the lender and they have agreed to a loan of money for a specific property. This is much different to an Agreement in Principle.
Searches – A conveyancer will ask you for money for a ‘search pack’. These searches are done by third parties to locate various things such as waterways near to the property, flood risks, any proposed developments close-by etc for your protection. The mortgage lender will need to be satisfied by the results of the searches in order to publish a mortgage offer.
Exchange of contracts – This is when the conveyancers are satisfied that all information has been gathered and things can proceed to a completion. The conveyancer will have your signed contract and deposit money, and they will ‘exchange contracts’ meaning that no-one can now back out of the sale. There is usually a week in between exchange of contracts and completion, but this can be a longer period of time upon request prior to exchange.