25 December 2023

How to buy a property on your own in 2024

 

1. Know what type of property you’re looking for

Take some time to think about what you need in a home. This will help you determine your budget. Start by making a list of your short-term and long-term needs. Answer questions such as:

 

• What is important to me in a new home?
• Do I want to build a family?
• How big my family will be?
• Where would I like to live?
• What is it like to live there?
• Do I want to live in a busy or a quieter area?
• What are my must-haves and what are my nice-to-haves?
• Do I need schools nearby?
• How long it would take to commute to work

 

Use a home-buying wishlist to help you organise your thoughts. It’s helpful to separate your thoughts into needs and wants. Needs are features that are must-haves. Wants are amenities that are nice to have but not necessary. When you’re searching for a property, you need to be specific. In addition, when you are close to making an offer, you should separate deal breakers from nice-to-haves.  To download Muir Home’s checklist click here.

2. Begin your research

Take your time to search for properties. Visit real estate agencies and open house events. Make a list of the properties you like. Research the properties on your list. Compare them to each other. Narrow it down to your top choices. By doing so, you will be able to determine what type of property and location you can afford. It may also help you figure out how much you need to save for a deposit.

 

3. Build your deposit

 

Now that you’ve determined the price of the property you want to buy, you should start building your deposit. Normally, you will need to deposit at least 5% of the value of the property you want to purchase. So if you want to buy a house costing £200,000, you should save up a deposit of at least £10,000. However, you should always strive for a bigger deposit as lenders will perceive you as a lower risk. According to Halifax, the average deposit required soared to almost £62,500.

 

4. Make sure your credit score is good

When you’re thinking about how to buy property, you should make sure you are sprucing up your credit score to prepare for a mortgage application. A good credit score helps lenders assess your mortgage application as a reliable borrower. If your credit score is not ideal, you can also improve it before applying for a loan to increase your chances of getting a mortgage.

 

5. Calculate your mortgage and get a “Decision Principle”

To understand how much you can borrow and how much money you will need to dedicate each month for your payment. You can use our mortgage calculator and decide whether you can afford the loan. 

 

You can also get a “Decision in Principle,” which involves a soft credit check and lets you know how much you can borrow. While it won’t impact your file, it will show real estate agents that you are serious about buying a property.

 

6. Consult a mortgage broker

It’s important to get expert mortgage advice as it’s not just the mortgage rate you need to consider but also the type of mortgage, fixed or variable, and its term. With the help of a mortgage broker, you can get the best mortgage at the lowest rate. If it’s the first time you buy a house, they can help you navigate the mortgage market and explore the best product for you.

7. Make sure you know all the costs

When you buy a house for the first time, you’ll discover it involves additional costs that you need to take into consideration, including legal fees, surveys and removal costs.  So make sure you understand the full range of costs before starting the buying process.

 

8. Look for government schemes

It may be possible for you to receive financial assistance from the government in order to buy property. For 2023, the government launched new schemes, including Mortgage Guarantee, Shared Ownership and First Homes. At Muir Homes, we want to get your dream home, which is why we offer an Assisted Move scheme for all our new home developments. 

9. Apply for mortgage

It always takes time to find and decide to buy a property. When you’re ready, you can make an offer to the real estate agent, and if accepted, you can apply for a mortgage.

 

Mortgage applications can take a few weeks to process. Your lender will conduct its own valuation of the property you wish to purchase, as well as detailed checks of your finances. Your lender will send you an offer if your mortgage application is approved.

 

10. Get the legal process started

A solicitor or licensed conveyancer carries out the legal work and will involve checking the legal title, managing the chain for the exchange of contracts and completion, and collecting and transferring money.

 

Solicitors or licensed conveyancers exchange signed contracts on behalf of you and the seller during a contract exchange. During this time, they will also ask you to transfer your deposit to them.

How to buy a property with Muir Homes

Let the experienced team at Muir Homes bring you a step closer to a brand new home with Assisted Move. Buying a property with us is a straightforward process. We’ll take care of everything from start to finish so you can relax and enjoy your new home. Contact us today, and you could be moving into your dream home sooner than you think. Our team of advisors are always on hand to answer any questions you might have. We look forward to hearing from you.