First Time Buyers Guide
5 Simple Steps to buying your new home
Pre-Loan Approval
A Finance Consultant from Tom McDonald & Associates can quickly arrange pre-loan approval for you, even before you have found a property. This can be arranged over the phone or by appointment. Pre-loan approval will be arranged with a selection of the most competitive Banks and Building Societies to provide you with the best options once you have found your new home.
Your dream home and making an offer
When you have found a house in your price range, the next step is to arrange a structural survey (advisable on all second hand houses). This survey will confirm if the property is structurally sound. It can also highlight problems which may be used later as a useful bargaining tool when making an offer.
It is a good idea to note any internal and external features that will require upgrading or repair. These may be window frames, a sagging gutter or simply repainting. These items may be used as negotiating tools with the seller of the property.
The offer is then made through an estate agent. A booking deposit is then normally paid to the estate agent when an offer is accepted.
Formal Loan Approval
At this stage your Finance Consultant has arranged pre-loan approval and you have placed a booking deposit on your new home. Once you have paid a booking deposit the contracts for sale are drawn up by the vendors solicitor and forwarded to your solicitor. You will normally have three weeks to sign the contracts.
This formal loan approval stage of the process is crucial as your solicitor will not allow you to sign the contracts unless you have written loan approval.
This step is equally important as the previous one, so give your Finance Consultant a call to arrange a suitable time to sit down and consider all your options.
Once you have chosen the most suitable mortgage, we will organise a valuation of the property on behalf of the lender. On receipt of a satisfactory valuation report the lending institution will issue us your formal loan approval letters. We will promptly forward these to you, having checked that everything is in order. We will also forward a copy to your solicitor.
Signing of Contracts
The balance of your 10% deposit is usually required at this point. Once your solicitor is satisfied with the title to the property, you are in a position to sign contracts. When you exchange unconditional contracts, the sale of the property is irrevocable. If you decide after this stage not to buy the property, you risk losing your deposit.
Completion
Your written loan approval will include a number of conditions which you must be satisfied before the lender will release your loan cheque, enabling you to close the sale of the property. The standard conditions include a satisfactory Life Insurance Policy, suitable House Insurance, or a Valuers final inspection if you are purchasing a brand new property.
On completion, the mortgage cheque is sent to your solicitor. Your solicitor transfers the funds to the vendor’s solicitor and the deal is closed. Transfer of ownership is now complete and you are now the proud owner of your new home.
Pre-loan approval is the first step when buying your new home, so don’t delay, contact us today. |
