I’m ready to buy a house – what should I do first?

July 16, 2024

Buying a house is one of the most significant and exciting decisions you’ll make in your lifetime. However, it can also be daunting if you’re unsure where to start. From understanding your finances to making an offer, each step requires careful consideration and planning. 

This guide aims to demystify the home-buying process, providing you with clear and actionable steps to follow. Whether you’re a first-time buyer or looking to move up the property ladder, this article will help you navigate the journey with confidence and ease. Let’s explore what you should do first when you’re ready to buy a house.

Understanding your finances

Before embarking on the exciting journey of buying a house, it’s essential to have a clear understanding of your financial situation. This step will set the foundation for a smooth and successful home-buying process.

Assess your savings

Start by evaluating your savings. Determine how much you have set aside for a deposit, as this will significantly impact your mortgage options and monthly repayments. Most UK lenders require a minimum deposit of 5% of the property’s value, but a larger deposit can help you secure a better mortgage rate.

Additionally, consider the costs associated with buying a house, such as stamp duty, legal fees, and moving expenses. Having a realistic budget will ensure you are financially prepared for the entire process.

Check your credit score

Your credit score plays a crucial role in your ability to obtain a mortgage. Lenders use it to assess your creditworthiness and determine the interest rate they’ll offer you. Obtain a copy of your credit report from a credit reference agency and review it for any errors or issues that need addressing.

If your credit score is less than ideal, take steps to improve it before applying for a mortgage. This might include paying off outstanding debts, making timely bill payments, and avoiding new credit applications.

Researching the market

With your finances in order, the next step is to research the housing market. Understanding the market will help you make informed decisions and find a property that meets your needs and budget.

Identify your preferred location

Decide where you want to live based on factors such as proximity to work, schools, public transport, and amenities. Consider what aspects are most important to you and your lifestyle. Research different neighbourhoods to get a feel for the area, safety, and community vibe.

Study property prices

Once you’ve identified your preferred location, study property prices in that area. Look at recent sales and current listings to get an idea of what you can afford. This research will help you set realistic expectations and avoid overpaying for a property.

Getting pre-approved for a mortgage

Before you start house hunting in earnest, it’s wise to get pre-approved for a mortgage. This process will give you a clear idea of how much you can borrow and demonstrate to sellers that you are a serious buyer.

Choose a mortgage type

There are various mortgage types available in the UK, including fixed-rate, variable-rate, and interest-only mortgages. Each has its pros and cons, so it’s essential to choose one that best suits your financial situation and long-term plans.

Find a lender

Shop around for a mortgage lender that offers competitive rates and favourable terms. You can approach banks, building societies, or use a mortgage broker to help you find the best deal. Be sure to compare different offers and understand the fees and conditions associated with each mortgage.

Finding a suitable property

With your mortgage pre-approval in hand, you’re ready to start looking for your new home. This stage involves working with professionals and attending property viewings.

Hire an estate agent

An experienced estate agent can be invaluable in your property search. They have in-depth knowledge of the local market and can help you find properties that match your criteria. Choose an agent who is familiar with your preferred location and has a good reputation.

Attend viewings

Schedule viewings for the properties that interest you. Take your time to thoroughly inspect each property, considering factors such as the condition of the house, potential renovation needs, and the surrounding neighbourhood. Don’t hesitate to ask questions and take notes during your visits.

Making an offer

Once you’ve found a property you love, it’s time to make an offer. This step involves determining a fair offer price and submitting it to the seller.

Determine your offer price

Consider the asking price, the property’s condition, and how it compares to similar properties in the area. Decide on a price that reflects the property’s value while staying within your budget. You may also want to factor in any renovation costs or other expenses.

Submit your offer

Work with your estate agent to submit your offer to the seller. Be prepared for negotiations, as the seller may counter your initial offer, or there may be bidding wars. Stay flexible and communicate clearly with your agent throughout this process to reach an agreement that works for both parties.

Finalising the purchase

With an accepted offer, you move into the final stages of the home-buying process. This includes arranging a property survey and hiring a solicitor.

Arrange a property survey

A property survey is essential to identify any structural issues or defects that might affect the property’s value or require repairs. Depending on the property’s age and condition, you may choose a basic survey or a more comprehensive one. Review the survey report carefully and discuss any concerns with your surveyor.

Hire a solicitor

A solicitor or conveyancer will handle the legal aspects of the purchase, including contracts, searches, and liaising with the seller’s solicitor. Choose a professional with experience in property transactions to ensure a smooth process. They will help you understand the legal documents and ensure everything is in order before completion.

Preparing for the move

As the purchase nears completion, start preparing for the move to your new home. This stage involves organising removals and setting up utilities and services.

Organise removals

Hire a reputable removal company to help you move your belongings. Book their services well in advance to secure your preferred moving date. If you’re moving a short distance, you might consider a DIY move, but for longer distances or larger households, professional movers are recommended.

Set up utilities and services

Contact utility providers to arrange for the transfer or setup of services such as electricity, gas, water, and internet. Notify other service providers of your change of address, including banks, insurance companies, and the post office. It’s also a good idea to update your address on the electoral roll and with any relevant government agencies.

Post-purchase considerations

After moving into your new home, there are a few additional steps to ensure you settle in comfortably and manage your mortgage effectively.

Review your mortgage terms

Once you’ve moved in, take the time to review your mortgage terms and conditions. Make sure you understand your repayment schedule, interest rate, and any applicable fees. Set up a system to ensure your mortgage payments are made on time each month.

Plan for future expenses

Owning a home comes with ongoing expenses, such as maintenance, repairs, and potential upgrades. Create a budget for these costs and consider setting aside an emergency fund to cover unexpected expenses. Regularly review your financial situation to ensure you can comfortably manage your mortgage and other obligations.

Personalise your new home

Finally, make your new house feel like home by personalising it to your taste. Whether it’s painting walls, decorating, or landscaping the garden, these touches will help you settle in and enjoy your new space.

Final thoughts

Buying a house is an exciting journey, but navigating the mortgage process can be complex. At Sett Mortgages, we’re here to make it easier for you. Our team of experienced advisors is ready to help you find the best mortgage options tailored to your needs. Whether you’re a first-time buyer or looking to remortgage, we provide personalised advice and support every step of the way.

Don’t leave your mortgage to chance. Contact Sett Mortgages today for a free consultation and take the first step towards owning your dream home with confidence. Get in touch to let us help you turn your home-buying dreams into reality.