How to buy a home

There are usually six steps involved in buying a home in England and Wales:

1. How much can you borrow. The amount you can borrow – your mortgage – plus your deposit, gives you a guide to the house you can afford. Your lender should be able to give you an 'agreement in principle' so you can start house hunting.
   
   These days it can be possible to get a mortgage that covers 90% of the purchase price. But if you have a larger deposit you can often benefit from better mortgage deals, and remember, the more you borrow the more interest you will have to pay. Lastly, you’ll also have upfront costs such as survey fees, legal costs and stamp duty to consider.
   
   Ways to pay back your mortgage
   
   
2. Find your new home. Some people might say that location is everything, but property type is important as well. So think about access to shops, schools and other services, and how easy it will be to travel to work.
   
   You might want to draw up a list of essential features like number of bedrooms, and a list of 'preferables' such as a garage or large garden. Once you've decided on the area and the type of house you're after, ask a number of local estate agents to send details of suitable properties.
   
   
3. Make an offer. When you've found the right property, make an offer through the estate agent. Remember, the sale price is what the seller hopes to get, not necessarily what they realistically expect - and you may be able to agree a lower price. Your offer should be 'subject to survey and subject to contract'.
   
   
4. Finalise your mortgage. The mortgage that was approved in principle needs to be arranged now. Your lender needs to know what the property is worth, and will arrange for a valuation. You'll have to pay for this. Valuations can be free with some mortgages.
   
   You might want to arrange for a detailed survey, especially if you're buying an older house.
   
   The basic survey, a Home Buyer's Report, only covers the parts of the property that are easily accessible or visible. A full structural survey is more in-depth and can unearth problems that could be costly in the future. If the survey does reveal serious problems, you can withdraw your offer on the property.
   
   And make sure you're protected. Think about life insurance as well as accident, sickness and unemployment insurance to cover your mortgage payments. You'll also need to insure your new home and belongings.
   
   Insure your new home
   
   
5. Appoint a solicitor. A solicitor or conveyancer will manage the legal transfer of a property from one owner to another and it makes sure that you have proper legal title. They'll also carry out all the necessary land searches to check for past and potential problems.
   
   The three main areas where a solicitor helps are:
   • When the sale is agreed – carrying out enquiries, preparing the contract, negotiating of the moving date, paying money on account and searches
   • At exchange of contracts – receipt of your deposit, approval of transfer deeds, contract and deposit to seller's solicitor, preparation of transfer and mortgage deeds, arrangement of final searches and preparation of final accounts
   • On completion – paying the balance of the purchase price and settlements, managing the handover of deeds, paying Stamp Duty and registration at Land Registry
6. Move in. Make sure you're fully prepared before you move, with your possessions boxed up and clearly labelled. You may want to hire a removal firm to help you.
   
   Don't forget:
   • Tell your old gas, electric, water and telephone suppliers that you're moving out
   • Tell your new utilities suppliers that you've moved in
   • Let the council know about your move so you don't pay Council Tax at your old address
   • Think about having your mail redirected from your old address

Once you've moved in there are a couple of extra things that you should take care of. After the first month, check that you're paying the right mortgage repayment amounts at the right time. And make sure your important documents are carefully filed away. They're your main record of your purchase and your mortgage and you may need them in the future.

The steps here are for home buyers in England and Wales. The process is different for buyers in Scotland.