How to buy a house - a complete checklist

So, you’ve decided this is the year to buy a new place? That’s fantastic! It’s an exciting goal, but let’s be honest – there’s a fair bit of work involved in making it happen.

Don’t worry though, we’re here to guide you through everything from getting your finances to having your offer accepted and getting right through to exchange and completion.

Think of this as your roadmap to homeownership. We’ll cover all the key steps, helping you navigate the process with confidence. Whether you’re a first-time buyer or looking to move up the property ladder, this guide will help you stay on track.

Thinking of buying a property? Let’s take a step back first and make sure it’s the right move for you. Whether you’re a first-time buyer or looking to upgrade, this is a big decision. It’s worth taking some time to consider all angles before jumping into the housing market.

Here are some key factors to think about:

• Financial readiness: How’s your savings looking? Is your income stable? What about your credit score? Can you comfortably afford the deposit and other costs that come with buying a property?
• Long-term plans: Are you planning to put down roots in the areas? Buying often makes more sense financially if you’re staying out for a while.
• Market conditions: What’s happening in your local property market? Is it favouring buyers or sellers right now?
• Lifestyle fit: Does owning a home suit your current and future needs? Think about space, commute times, and the amenities you’d like nearby?
• Maintenance responsibilities: Are you ready for the time and money that goes into keeping a home in good shape?

We’ll dive deeper into some of these points later, but for now, keep these in mind. They’ll help you make sure your decision is well-informed and that your planned move is the right one for you.

We know you’re excited to start viewing properties – it’s one of the most thrilling parts of the process! But before you dive in, let’s make sure you’re looking at home that fit in your budget.

Your mortgage deposit is likely to be your biggest expense when buying a property. The more you can save, the better. If you’re a first-time buyer, you’ll be leading heavily on your savings. Already on the property ladder? You might be able to use the equity you’ve built up in your current home.

No matter your situation, it’s a good idea to chat with lenders or a mortgage broker. They can give you a clear picture of what you might be able to borrow.

Here’s a tip: try to get a Mortgage in Principle (MIP) before you start house hunting. You might also hear it called Agreement in Principle or something similar. It’s a document that gives you an estimate of how much you could borrow. This helps in two ways:

1. It narrows your search to properties within your budget.

2. It shows estate agents you’re a serious buyer.

Getting an MIP is usually straightforward. You can get one form most lenders websites for free or ask your mortgage broker for help.

Understanding your budget is the first step to purchasing a new property. It helps set realistic expectations and makes the whole process smoother.

It’s not just your mortgage costs that you’re going to need to consider, there are some additional things you’ll need to have some surplus cash for, including:

1. Conveyancing fees: Legal work for property purchase. £800-£2,000.

2. Disbursements: Additional legal expenses.

• Land registry: £90-£140
• Search fees: £250
• Identity checks: £20-£30
• Bank transfers: £20-£25 per transaction

3. Stamp Duty Land Tax (SDLT) or Land Transaction Tax (LTT): Property purchase tax. Varies based on property value.

4. Surveys: Property condition inspection. £400-£1,500.

5. Mortgage valuation: Lender's property value check. £100-£600.

6. Mortgage fee: Lender's setup fee. £0-£2,500.

7. Mortgage broker: Intermediary for finding loans. £150-£600.

8. Building insurance: Required by lender. £100-£400 annually.

9. Removal costs: Moving belongings. £350-£2,000+.

Now that you’ve got a clearer picture of your budget, it’s time to start your property search. We know you’ve probably been sneaking peeks at listings (who could resist?), but now you can approach it more strategically.

Let’s get picky – in a good way! Grab a notepad and jot down your must-haves and nice-to-haves. House or flat? City buzz or country quiet? Think about how all these options fit your lifestyle. A dream property might lose its appeal if it means a nightmare commute or needs endless DIY.

You’ve heard it before, but it’s true: location, location, location. Dive deep into researching neighbourhoods. What’s nearby? How close are work or schools? Do you need good public transport links? These factors can make or break your day-to-day life in a new home.

Keep your budget and that list of must-haves in mind as you start your search, be prepared to compromise on some things, but know your deal-breakers. Remember, you can update an outdated kitchen, but you can’t move the house to a new location.

It’s a good idea to set up a spreadsheet to track the properties you view. Trust us on this one – after your tenth viewing, they all start to blend!

Now for the exciting part – house hunting! You’ve done your homework, and it’s time to start viewing properties and getting a real feel for what you’re after.

Kick things off by browsing online. Sites like Rightmove and Zoopla are great for getting a sense of the market and what’s out there. But remember, pictures can only tell you so much. Make sure you go and view plenty of properties in person.

Everyone’s home wishlist is different. Buying with friends or a partner? Planning for a growing family? Think about how the space needs to work for you now and in the near future.

Some lucky folks fall head over heels for the first property they see. For others, it might take 10 viewings or more to find ‘the one’. If you’re in the latter camp, don’t get discouraged. Keep viewing – the right property is out there.

After a few viewings, you’ll start to get a clearer picture of what your budget can get you. This is when you might need to get a bit flexible. Maybe you’ll need to widen your search area a bit, or perhaps shuffle your nice-to-haves list. IT’s all about finding that sweet spot between your wants and budget.

Remember, every viewing teaches you something new about what you want (and don’t want) in a home.

You’ve done your research, set your budget, and found a home that ticks your boxes. Now comes the thrilling part – making an offer. While it’s tempting to dive in headfirst, a touch of strategy here could save you some money.

Start with a compelling bid. Typically, this might be about 5% to 10% below the asking price. But remember, every property and seller is different, so use your best judgement based on the market and how long the property has been listed.

Do you have any advantages? Now is the time to use them. For instance, if you’re a first-time buyer, chain-free, or a cash buyer, make sure you mention it. These advantages can sometimes tip the scales in your favour.

Be prepared for some back-and-forth. If the seller’s interested, they’ll likely come back with a counteroffer through the estate agents. You can then gently increase your offer until you both reach a happy middle ground.

In a hot market with lots of competition? You might want to consider putting your best offer forward right away. It could give you an edge over other buyers.

Always follow up your verbal offers with written confirmation. An email works perfectly. It helps avoid any confusion down the line and keeps everything crystal clear.

Fantastic news – your offer’s been accepted! This is a big step on your journey to becoming a homeowner. It’s totally normal to feel over the moon, but let’s keep our feet on the ground for the moment – there’s still some important work ahead.

A savvy move at this is to ask the estate agent to take the property off the market. This can help reduce the risk of being gazumped (that’s when another buyer swoops in with a higher offer). Just keep in mind that until contracts are exchanged, nothing’s set in stone legally.

To keep things moving smoothly, it’s time to kick into high gear:

1. Schedule property surveys

2. Get those documents over to your lender

3. Stay in close touch with your conveyancer

Being proactive now can save you headaches down the line. It shows the seller you’re serious and can help prevent any unnecessary delays.

Great news! Your offer’s been accepted. Now it’s time to get that mortgage officially sorted (if you need one). Your chosen lender will need some key info about you and your finances. Let’s get you prepared to make this part as smooth as possible.

Here’s a handy checklist of essential documents to gather:

1. Your last 3 months of payslips
2. Bank statements from the last 3 to 6 months
3. P60 from your employer
4. Passport and/or driving licence
5. The property listing for your soon-to-be home
6. Proof of your National Insurance number

Depending on your situation, you might need to provide a bit more info. This is especially true if you’re self-employed. Don’t worry though – your lender will let you know if they need anything extra.

Having these documents ready to go can really speed things up. It helps avoid those pesky delays and keeps your application moving forward nicely.

With your offer accepted and mortgage application underway, it’s time to focus on the legal side of your property purchase. Enter the conveyancer – your legal expert in this journey.

If you’re getting a mortgage, your lender will require you to hire a conveyancer as part of your agreement. Cash buyers could technically handle this themselves, but we’d never recommend it unless you’ve got the proper experience.

How do I choose a conveyancer?

Between your offer acceptance and exchange of contracts, your conveyancer will be busy with a range of tasks. Here’s what they’ll be doing:

• Perform ID and source of funds checks
• Review title deeds and prepare contracts
• Conduct necessary searches (local, environmental, drainage)
• Make property enquiries to the seller
• Advise on required surveys/valuations
• Review mortgages offer conditions
• Explain contract terms to you
• Negotiate between parties if needed
• Answer your questions throughout
• Set target dates for exchange and completion

Keep in mind, this list covers key responsibilities, but depending on your specific situation, your conveyancer might take on additional tasks.

With your mortgage agreed and conveyancer on board, it’s time to think about a house survey. Think of it as a health check for your potential new home, uncovering any structural secrets or quirks that might be hiding beneath the surface.

While surveys aren’t legally required, they’re highly recommended. They could reveal defects that might make you think twice about the property.

Here’s an important note, a mortgage valuation isn’t the same as a survey. A valuation just tells the lender what the property’s worth, but it doesn’t inspect the property’s condition like a survey does.

That’s why it’s worth organising your own survey for a more detailed look at the property you’re hoping to call home.

You’ve got three levels of surveys to choose from:

1. Home condition report (low-level)

2. HomeBuyer report (mid-level)

3. Building Survey (high-level)

The higher the level the more expensive, but the more thorough the inspection will be.

If the survey does turn up any major issues or defects, don’t panic. You can go back to the seller and renegotiate. In extreme cases, you could even pull out of the purchase if the problems are too serious.

What type of house survey do I need?

You’re on the final stretch now! Your conveyancer will be working with the seller’s side to set two key dates:

• Exchange day: This is when things get serious. Contracts become legally binding, you’ll pay your deposit (usually 10% of the purchase price), and backing out now would come with hefty penalties. Make sure your building insurance also kicks in from this date.
• Completion day: That day you’ve been waiting for! This is when you pay the remaining balance, get the keys, and officially become the property owner. It’s usually 1 to 2 weeks after exchange, but it can be on the same day or further apart if that is what’s agreed.

It’s crucial to coordinate these dates carefully. You’ll need to sync up with your mortgage lender, other people in your chain, and your removal company to make sure everything lines up.

Once these dates are locked in, it’s time to start packing. Your new home is just around the corner.

The big day is approaching! Let’s make sure you’re all set for a smooth move:

• Book your removal company early, especially if you’re moving during busy times. Get at least three quotes and double-check their insurance cover. You want to know your belongings are in safe hands.
• Start decluttering and packing non-essentials well in advance. Label your boxes clearly by room and content. You’ll thank yourself later when you’re hunting for the kettle in a sea of unmarked boxes!
• Let the important people know you're moving. Update your address with employers, banks, utility providers, subscription services, and government agencies.
• Sort out your utilities. Arrange for them to be disconnected at your old place and set up at your new home. Nobody wants to arrive at their new house to find no electricity!
• Pack an “essentials box” with items you’ll need right away in your new home. Think toiletries, a change of clothes, basic tools, and important documents. It’s your survival kit for those first chaotic hours.

Keep your valuables and crucial documents with you during the move. It’s always better to be safe than sorry.

You’re at a crucial milestone now – exchanging contracts. This is when things get official and legally binding.

Here’s what happens: your conveyancer and the seller’s conveyancer swap signed contracts. They’ll fill in key information, sign off, and return the documents.

This is also when you’ll pay your deposit to your conveyancer. Usually, this is 10% of the purchase price, but it might be different depending on what you’ve agreed.

And remember, once you’ve exchanged contracts and paid your deposit, you’re committed. If you decide to pull out after this point, you’ll lose that deposit. So, make sure you’re 100% certain before you take this step.

Exchanging contracts is a big moment. It means you’re on the final stretch to owning your new home. You might feel a mix of nerves and excitement – that’s totally normal. Just take a deep breath and remember how far you’ve come.

Learn more about the exchange of contracts here.

The day you’ve been waiting for is finally here – completion day! Whether it’s taken weeks or months to reach this point, it’s time to celebrate.

Completion day is the grand finale of your property journey. It’s when legal ownership of the property officially transfers to you, and you get those all-important keys to your new home.

Now, the exact time you’ll get your keys can vary on your unique situation. It’s all down to your property chain. As funds transfer up the chain, each set of keys is released. If you're higher up in the chain, you might get your keys a bit later in the day.

Don’t worry if you find yourself clock-watching – this is completely normal. Your conveyancer will keep you posted on progress throughout the day. Learn more about property chains here.

Once you’ve got the keys to your new home, you’re free to move in whenever. It’s common to move in on completion day if you’re selling a property as you would have also released your keys to the buyers of your home.

 Congratulations if you’ve made it to this point! All your hard work has paid off.

Once you’ve got the keys, feel free to move in whenever you’re ready. Many people choose to move in on completion day, especially if they’ve just sold their previous home (you and your stuff need to go somewhere).

Congratulations on reaching this milestone! All your hard work has paid off.

Now that you’re settling into your new home, there are just a few financial tasks to tick off. Don’t worry you’re on the home stretch!

• Stamp Duty Land Tax (SDLT): This must be paid within 14 days of completion. Your conveyancer typically handles this for you. If you live in Wales, it is called Land Transaction Tax, and it must be paid within 28 days of completion.
• Conveyancing fees: These are usually paid upon completion. This includes the basic fee plus disbursements (searches, land registry fees, etc.).
• Ensure you have funds ready to cover these costs. They’re often some of the costliest things after your deposit, so factor them in from the start!

And that’s it (we say lightly)! You’ve completed your move, and you should be proud it’s a challenging process but you’ve done it, and we hope you enjoy your new home.

What is stamp duty in the UK?