Buying a house is a process which needs full commitment from both the party. It applies especially to the buyer who is buying the house for the first time. The commitment comes in when the buyer has to research all that has to be known about purchasing a house, saving money for the process and even the process of meeting with the real estate agents. Do you need to have a smooth house purchase process? Here is the highlight of some general steps that anyone can afford to follow while purchasing a house.
Stages of house purchase.
- Find the house you can afford.
Before thinking of taking your savings to buy a house, you have to consider your income to ensure that you are able to meet every cost incurred when purchasing a house. You can even find guidance on how much you can borrow from the bank or other loan lenders to help you make your house purchase process smooth. Again, the money borrowed loan should be according to your income.
You should be prepared for alternative ways to get capital in case s financial situation arises. This should be done before committing yourself fully to the house purchase process. Your savings should be enough to cover all costs such as mortgage fee and stamp duty on property.
When in a process of purchasing a house, never stress yourself first with how you will arrange the house or how the house will be decorated or anything that should be done after the house purchase. First, find the type of house you want and accept it as a mortgage in principle which will help you know how much money the lender will give and the interest rates for paying. You can then pay a booking fee for reserving the mortgage that you desire.
- Make an offer
Once you have found the type of house that you want, the next step is to make an offer. This will be done by buying a certain fee to the real estate agent.
- Hire a solicitor and surveyor
A solicitor is a person who helps you handle the legal work pertaining the property while the surveyor is the person who will inspect the property and check for problems which might lower or affect the cost of the house. These two people will require being paid for that work so you have to be prepared with extra money other than that set aside for purchasing a house. This is what makes the house purchase work a big process. The solicitor will then submit his search to the local council and find out if there might some issues, may it be planning or local that might affect the house purchase process.
What is the work of solicitors in purchase house process?
The best way to purchase a house is to include these two people in your house purchase process. The work of a solicitor will be:
- Handle contracts.
- Transfer funds for paying your property.
- Carry out searches about the property in the local council.
- Deal with the land registry.
- Give the client the required legal advice.
They will charge you in different ways like fived fee, hourly rate or a percentage of the property price.
What must be done by the surveyor when purchasing a house?
- Valuation survey. This is done to make sure the house to be purchased is worth the money that the lender is paying before approving the house purchase. It sometimes doesn’t cover all the repairs or maintenance that may be needed to be done to the house.
- The property survey. This survey should be done do avoid some hidden costly problems which will be noticed later. Because this is the house that has caught your eye, it should be examined closely and renegotiate the price with the seller in case a certain problem is discovered or spotted. The seller should lower the price by the cost of the problem. Types of surveys done when purchasing a house are:
- RICS condition report – These are mostly done for houses are new-build which are still in their good condition. This is the cheapest survey. There is no valuation or provided for this survey.
- RICS homebuyer report – These surveys are conducted in houses or in general properties that are in reasonable condition. However, thorough inspection of the property is done both inside and outside the house. It includes valuation of the property. This is the most common type of survey of house purchase process.
- Building or structural survey – This is the most suitable survey to consider when purchasing a house though it is expensive. It is done for all residential houses that are old or those that require repair.
The final step in house purchase process
Sometimes back, a lady came to our office and said to me, “I want to purchase a house.” She really needed our help. She had been given some advice by her friends but she wanted to know the best way to purchase a house. She had already completed some of the above steps. We didn’t want to take her back to the same steps again because that would be both time and money consuming but we had to help her with the final steps of purchasing a house. I have to share the final step here.
The buyer must have to finalize the offer and mortgage. During the survey, some problems about the house, that might be expensive to fix, might be uncovered. This can make the buyer ask a reduction in price. Also, the buyer may be asking to buy the house at a lower price which will leave the seller with a shortfall. This is the most stressful stage of house purchase process as the buyer can find himself in some situations like; the mortgage application may be rejected, the seller may withdraw the house from the market or even the seller may accept a higher offer from another buyer. If things like these happen, the buyer should contact his mortgage advisor for more advice.
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