If you are looking to buy a new-build house, the process will be a little bit different than if you were buying an old home. While there are a lot of advantages to buying a new house, getting a mortgage for it can be a little bit difficult. Here are a few things you should know when making this investment.
Get Your Finances In Order
The first thing you have to do when buying any property is sort out your finances. Speak to a mortgage consultant to find how much you can borrow so you know what you can afford and to find out if loan-to-value requirements from mortgage lenders are different for new build properties. If you are a first-time buyer, try and get a mortgage agreement in principle (AIP) before you start house hunting. This is a written document from a mortgage lender confirming that they will give you a mortgage for a certain amount. It is used to ascertain your affordability to the property developer.
Find A House That’s Right For You
The next step is to identify a property within your budget and research the developing company. Their track record should tell you if there were any problems with their previous developments. This is particularly important if you are buying off-plan because you will be buying a house that is yet to be built.
Make An Offer And Reserve The Property
Once you find your ideal property and are confident that you will afford the monthly mortgage payments, you can go ahead and make an offer. Make sure that you are absolutely certain because once you put down an offer, you may be required to pay a non-refundable reservation fee of £500 to £2000 to reserve the property.
Get A Conveyancer
The conveyancing process when buying a house can a daunting task, so get a conveyancer to manage the legal side of your purchase. They will check that the contract is in your favour and raise any issues that come up along the way. If your conveyancer is happy with the contract, they will exchange contracts with the developer’s conveyancer, and at this stage, you will be required to pay your deposit. The last step of the conveyancing process is completion, which can only takes place after the property has been built and signed off as structurally secure by Building Control.
If you need help buying a property, contact us today and speak to our team of legal experts.
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