What is The Home Buying Process for First-Time Buyers?
You have been thinking about it for a long time, researched your dream homes and made a mental commitment; now what? How do you actually set the ball rolling when it comes to buying your first home?
Buying a house is a massive investment, perhaps one of the biggest you will ever make, so doing some research before you begin makes perfect sense. First of all, you will need to know what you can afford? What are your current outgoings? How much savings do you have for a deposit?
Let’s take a step-by-step look at the home buying process:
Before anything else, you will need to know how much you can put down as a deposit for your new home. This will help you work out how much you will need for your mortgage loan. The deposit amount is usually 10% of the cost of the property, subject to status; But don’t worry, if you don’t have a 10% deposit, Government Schemes like Help to Buy (Scotland) can help.
The Scottish Government-backed Help to Buy scheme, which allows buyers to purchase a new-build home up to the value of £200,000 with only a 5% deposit, is one of the most effective helping hands that first-time buyers can get to take that first step onto the property ladder.
With this scheme, buyers purchasing a new-build home can get an equity loan from the Scottish Government for up to 15% of the value of the property*. Muir Homes has many stunning properties available, on developments across Scotland that qualify for Help to Buy.
Agreement in Principle
Once you have worked out your deposit and how much mortgage loan you require, you will need to get an agreement in Principle (AiP). This will indicate whether a bank can lend you the mortgage amount you need. This gives you added security with a mortgage lender and lets the sellers know you are serious.
Find your dream home
Once you know how much you have, can afford and can borrow, you can start the exciting part of looking for your new home. Once you know what area you want to live in, research properties online and make bookings to view the properties or showhomes. Once you have found your dream home, all you need is to put down a small reservation fee which will secure your home for you until it is ready to move into – it’s as easy as that!
With a new build home, the price advertised is the price you pay so there is no need to worry about how much to offer or negotiating on price. All the properties on offer at Muir Homes can be viewed here.
Find the right mortgage for you
If you need help choosing a mortgage, it is best to speak to a mortgage advisor. Many first-time buyers prefer fixed-rate mortgages because they allow them to budget with certainty, without worrying about fluctuating interest rates.
Seek legal advice
You will need a Solicitor to handle the legal aspects of buying your new home.
Property valuation and surveys
A property valuation will be arranged by your mortgage advisor to determine its value.
At this point, you should also consider appointing a surveyor to do an in-depth inspection of the property you wish to purchase. A RICS surveyor (Royal Institute of Chartered Surveyors) is highly regarded in the property industry.
Conclusion of missives
Once the property valuation and survey is approved, your solicitor will agree with the seller’s solicitor the purchase details in writing. Once you and the seller have signed it, this is legally binding and known as ‘conclusion of missives’. At this stage, you should now transfer the deposit to your solicitor.
You are nearly there! Finally, you now have to agree on a date of sale with the seller, and also your solicitor and mortgage advisor. All have to be in the loop. On the sale date, your mortgage advisor will transfer the mortgage amount to your solicitor who will complete the purchase. This is known as completion. Once this is done, the house is yours – congratulations! You can now go and pick up the keys and move into your first home.
If you still need more information about buying your first home, Scottish Housing Day 2017 takes place on 21 September, and one of the day’s main themes is the challenges that face younger people when it comes to accessing housing. Look out for all the help and advice for First Time buyers.
Find your dream home on a Muir Homes development here.
*Help to Buy is subject to terms and conditions set by the Scottish Government. More information on the scheme, can be found here