Buying a house is a big step, especially if it's your first time. The process can seem overwhelming, but don't worry—I've been through it, and I'm here to walk you through each step. From saving up for a deposit to getting the keys to your new home, this guide will cover everything you need to know.

Step 1: Financial Preparation

Before anything else, you need to get your finances in order. This doesn't just mean saving for a deposit; there are other costs to consider too.

Saving for a Deposit

Most lenders prefer if you can put down a 20% deposit, but let's be real—that's a hefty sum. Many first-time buyers, myself included, put down around 10% to 13%. The key is to save as much as you can to get a better mortgage rate.

Don't Forget Additional Costs

Besides the deposit, there are other expenses like:

• Solicitor fees
• Stamp duty (though first-time buyers often get relief)
• Land registry fees
• Moving costs
• Home repairs and furnishings

It's wise to have an extra £5,000 to £10,000 saved up to cover these unexpected costs. Trust me, it's better to be prepared than caught off guard.

Step 2: Getting a Mortgage in Principle

A Mortgage in Principle (sometimes called a Decision in Principle) is a statement from a lender saying how much they'd be willing to lend you. It's free to get and doesn't affect your credit score.

Here's what you should do:

• Apply for a Mortgage in Principle from several banks or building societies.
• Compare how much each is willing to lend you.
• Use this information to set your budget.

This step helps you understand what you can afford and shows sellers that you're serious.

Step 3: Property Searching

Now comes the exciting part—house hunting! But first, decide what's more important to you: the location or the house itself.

Location vs. Property

Initially, I thought a bigger, nicer house was what I wanted, even if it meant compromising on location. But after reserving a property, I realized the area didn't suit me at all. We ended up choosing a smaller house in a location we loved, and I couldn't be happier.

Remember, you can always improve your home, but you can't change its location.

Starting Your Search

Here are some ways to find properties:

• Browse online platforms like Rightmove and Zoopla.
• Visit new-build developments for show homes.
• Contact local estate agents for listings.

Viewing different types of properties can also help you refine what you're looking for.

Step 4: Viewing Properties

Don't be shy about booking viewings—it's a normal part of the process. Visiting show homes or open houses can also ease you into it if you're feeling nervous.

When viewing, consider:

• The condition of the property
• The neighborhood and local amenities
• Potential renovation costs

Take your time and don't rush this step. It's important to find a place that feels right.

Step 5: Making an Offer

Once you've found your dream home, it's time to make an offer. This can be nerve-wracking, but here's how to approach it:

• Research similar properties in the area to gauge appropriate pricing.
• Decide on a starting offer lower than the asking price.
• Be prepared to negotiate.

Don't be afraid to negotiate extras, especially with new builds. Sometimes, developers may throw in incentives like upgraded appliances or help with legal fees.

In our case, we were offered about £10,000 worth of extras! It pays to ask.

Step 6: Hiring a Solicitor

A good solicitor is worth their weight in gold. They'll handle the legal aspects of the purchase, conducting searches, and ensuring the property's title is in order.

Choosing a Solicitor

You can:

• Get recommendations from friends or family.
• Compare quotes online.
• Check reviews and qualifications.

Expect to pay around £2,000 for a solicitor, including fees for searches and other legal requirements.

Tip: Cheaper isn't always better. A reliable solicitor can save you headaches down the line.

Step 7: Surveys and Valuations

Your lender will require a basic valuation to ensure the property is worth what you're paying. However, you might also consider a more detailed survey.

Types of Surveys

• Homebuyer Report: A mid-level survey suitable for conventional properties in reasonable condition.
• Building Survey: A detailed report ideal for older or unusual properties.

We opted out of an additional survey because we purchased a new build with warranties. If you're buying an older home, investing in a survey can reveal issues that might not be obvious.

Step 8: Finalizing the Mortgage

With the valuation complete, it's time to secure your mortgage offer.

Using a Mortgage Broker

We chose to work with a mortgage broker. They handled:

• Finding the best mortgage deals
• Managing the application process
• Liaising with the lender

You can also apply directly to lenders if you prefer. The key is to compare rates and terms to find the best fit for you.

Step 9: Exchanging Contracts

This is when things get serious. Exchanging contracts makes the sale legally binding.

What Happens During Exchange

• You sign the contract prepared by your solicitor.
• You pay your deposit—usually 10% of the property's price.
• The seller signs their part of the contract.
• Contracts are exchanged via your solicitors.

Important: After exchange, if you pull out, you could lose your entire deposit. Make sure you're committed before taking this step.

Step 10: Completion

Completion is the final step where ownership is transferred, and you get the keys to your new home.

During Completion

• The remaining funds are transferred to the seller.
• Your solicitor handles the final paperwork.
• You pay any outstanding fees, like Land Registry charges.

Completion usually happens one to two weeks after exchanging contracts, but it can be on the same day. For us, it's happening on the same day, which is exciting!

Additional Tips and Resources

Throughout this journey, I learned a lot. Here are some extra tips:

• Stay Organized: Keep all your documents in one place.
• Ask Questions: Don't hesitate to ask your solicitor or broker if you're unsure about something.
• Budget Wisely: Unexpected costs can pop up, so having a financial cushion is helpful.

For more insights, check out our Affordability Calculator to see how much you can borrow. Understanding your finances is key to a smooth buying process.

Conclusion

Buying your first home is a mix of excitement and nerves. By understanding each step and preparing ahead, you can navigate the process with confidence. Remember, it's okay to take your time and seek professional advice when needed.

Good luck on your journey to becoming a homeowner!