Buying a home can feel like a daunting process – especially if you’re a first-time buyer. However, if you look at the process step by step, you’re sure to feel less overwhelmed.

If you’re unsure about what the steps are when buying a home, we’ve got you covered. We’ve broken down and explained the key stages of the home purchase process.

Read on to learn more about the home purchase process, including the steps from start to finish.

1- Get an AIP (Agreement in Principle)

The first step in buying a home should always be to secure an AIP, also known as a DIP (Decision in Principle). A mortgage calculator tool can give you some insight, but an AIP gives you a more solid figure.

It is a confirmation that a lender could (in principle) give you a mortgage. The amount of the AIP depends on your circumstances and your finances.

This can help you gain an understanding of the price bracket you should be looking at, allowing you to narrow down your search for the perfect home. Sites such as Rightmove and Zoopla allow you to search within a certain price range, making it easy to find a home that you can afford.

The amount of time it takes to get a mortgage agreement in principle can vary depending on a variety of factors. However, many lenders will let you know the same day or within 24 hours.

When speaking to a lender, ensure that you have all the relevant information to hand. An AIP is used by your estate agent to confirm that you’re in a financial position to purchase the property.

2- Find the Perfect Property

Once you’ve got an agreement in principle, you can start looking for properties within your price range. There are a variety of ways you can look for the right property – for example, you can search via an estate agent or through property websites.

It’s also important to research the area you’re looking for properties in. Many people look for things such as transport links, nearby schools, and other amenities such as local shops.

A quick chat with your mortgage broker can give you an insight as to the best places to look in your local area. However, don’t be afraid to look for properties outside of your local area – you may find something cheaper. In 2022, it’s best to check every day – if not twice a day. This is because houses are being sold quickly, and you don’t want to miss your chance of buying the perfect home.

Once you’ve found a property that you’re interested in, you should arrange a viewing. Pictures never show the full picture – the best way of getting a feel of the home is by looking around it.

3- Make an Offer and Get Accepted

Once you have searched and found the perfect property, it’s time to put down an offer. If your first offer isn’t accepted, don’t be afraid to put in another offer – it is often a negotiation for the best price.

When your offer is accepted, you’ll receive a Memorandum of Sale. This is confirmation that the sale is agreed – subject to contract.

4- Mortgage Application

After your offer has been accepted, it’s time to contact your mortgage advisor to arrange the right mortgage for yourself.

Your mortgage advisor will discuss your options with you, and how you can protect your mortgage. They will usually discuss insurance options with you.

5- Get a Solicitor

There is plenty of legal paperwork to consider – which is why you should get a solicitor or conveyancer to deal with the legalities. Conveyancing is the process of transferring the ownership – so a conveyancer will transfer the ownership of the home to you.

Be sure to check how much the process will cost, and work out what questions to ask the conveyancing solicitor. They will conduct all the relevant searches (e.g environmental), and check that there aren’t any major issues with the property.

6- Exchange Contracts

Before you exchange contracts with the seller, you should agree upon a completion date. Typically, this occurs around four weeks after you’ve exchanged contracts.

The exchange of contracts should only be completed after you’ve received the surveyor’s report, and any action has been taken regarding the results.

The final stage of the home purchase process is the exchange of contracts. After exchanging contracts with the seller, you’re legally committed to purchasing the property, and you are both legally required to complete the sale.

If you need advice when buying a home, contact us today for quality house purchase advice.