Buying | Selling | A - Z of moving terms
Before you start looking for your new home it is a good idea to seek advice from a mortgage advisor.
They will be able to assess your financial situation and give you a good idea of the amount of money you will be able to borrow, as well as establishing what your monthly payments will be including any additional monthly outgoings that will be required, such as insurances and council tax etc. They will also be able to advise you of any initial costs associated with the house buying process, for example the mortgage arrangement fee.
The mortgage advisor may be able to obtain you a ‘mortgage in principal’. This is an agreement in principal from the lender, which shows the maximum amount of money they would be happy for you to borrow.
Obtaining a mortgage in principal before you start house hunting is often a good idea as it gives you a clear indication of your affordability.
Pearl Estate Agents will be happy to recommend to you an independent financial advisor.
It may also be helpful at this stage to identify a good solicitor to deal with the conveyance. Again, we are happy to assist you with this and can obtain free, no obligation quotes from a select group of solicitors whom we would recommend.
Once you have had your offer accepted on a property, you should meet with your mortgage advisor to complete your mortgage application. As your mortgage has only been agreed in principal, the lender will now have to complete a number of checks, including a credit check, to ensure that your application satisfies their lending criteria.
Once the checks are completed and your lender is happy to proceed, they will instruct a surveyor to carry out a survey on the property you are buying. Your lender will normally only request a valuation report, so if you require a more in depth survey (a homebuyers report or a structural survey) you may have to commission this yourself.
You should now instruct your solicitor. They will require the details of the property you are purchasing so make sure you have the full address. You will also need to pass your solicitors details to the estate agent dealing with the sale. Your solicitor will write to you confirming your instruction and detailing the monies they will require from you both initially and closer to completion of your purchase.
Once the valuation report has been completed it will be forwarded to your lender. They will also send you a copy, complete with any special lending conditions which may apply (if any). At this stage it would be advisable to obtain quotes for the relevant insurances you will require once the purchase is complete (if you have not already arranged these with your mortgage advisor).
Your solicitor will now apply for searches on your behalf and should also now be in receipt of ‘draft contracts’ from the vendor’s solicitor. The may have to raise ‘enquiries’ on this contract to ensure that all is in order with the contract. Enquiries may include, for example, checking that planning permission has been obtained for any building work that has previously been completed on the property you are purchasing.
Your mortgage provider will issue your mortgage offer to yourself and your solicitor. Your solicitor will now gather all the necessary legal paperwork together for you to sign. At this stage you will have to pay the balance of funds due to your solicitor. This will include any deposit you may be paying towards your mortgage and also the balance of your solicitor’s fees. You will have already received a copy of this expected amount, as detailed in step 2.
Your solicitor is now in a position to exchange contracts with the vendor’s solicitor. A suitable completion date will be fixed and you are now legally bound to proceed with the purchase through to completion. You should now make sure that your relevant insurances are put ‘on risk’, ready for completion of the purchase. The vendor’s estate agent should ring you to confirm exchange and to arrange collection of the keys on completion day.
Book your removals van!
Completion day! Your solicitor and Estate Agents will call you to confirm that completion has taken place and you can collect your keys.
0114 287 2212
