To ask you to explain buying a home to me like I am 10

house887 · 2023-04-14T15:46:31+00:00

I need it dumbing down as we are first time buyers! It’s a minefield and it doesn’t seem like there’s a simple explanation online even though I’ve been googling for days We’re going to our second viewing tomorrow. The house is a fantastic deal in the best possible area and we know it’ll be snapped up almost immediately. Estate agent has said we’ll be first to view as it only went on rightmove today. Deposit is across a few accounts, mine, DHs and my parents who are gifting us something towards it. Does that matter at this stage? What do we need to do tomorrow if we like the house and want it? Do you make an offer there and then? We have a mortgage in principle and a broker who is working with us but haven’t researched solicitors or surveyors yet Thank you x

OnMyWayToSenility · 14/04/2023 16:52

You don't need to do much at this stage, tge estate agents will ask for proof of mortgage and possibly proof of deposit.. screen shots are okay.

Then when offer is accepted and you've been in contact with estate agents you can then get onto the mortgage co.

A few weeks will pass...
then you get a survey and or appoint a conveyancing solicitor, buy insurance for non sale just in case!
Then you negotiate if major undisclosed works are involved.

DelphiniumBlue · 14/04/2023 16:58

I would start researching solicitors now.
If your offer is accepted, you will need to pass on your solicitors details straight way.
In order to formally instruct solicitors, you will need to send them back a signed copy of their instructions, and usually some money on account for searches. You can see that this may take a little time, so at least decide who will act for you - you may want to get estimates from a few different firms, or get personal recommendations - it all takes time.
You wouldn't normally pay over the deposit until your solicitors confirm that you are more or less ready to exchange contracts, so some weeks down the line.

Curiosity101 · 14/04/2023 17:00

For things like this I'd recommend asking chatGPT.

Literally "Explain the process of buying a home in England to me in simple terms" or something like that. You can also ask lots of specific questions too.

luckystarg · 14/04/2023 17:05

You decide yes or no on the house. You put in an offer. My experience has always been that if it isn’t a competitive market then to go under. EA will speak to seller and tell you yes or no, you can then increase. Do not go above what you think it’s worth.

Once sale is agreed (or potentially to agree the offer) you will provide EA with proof you can afford it, either by getting your broker to call them and confirm or speaking to their mortgage adviser in house or by showing an AIP.

I would never use the in-house adviser personally. Mine is also free.

Next steps are:

find a mortgage broker if you don’t have one. Some are free (make money on commission of house going through) the others charge a fee (they ALSO get commission but you lose money if sale isn’t completed)
find a solicitor - look up local ones or ask friends. They do not need to be local to you but it helps.
tell EA your solicitor details
now EA and solicitor can speak directly with the seller’s solicitor
you will now receive different emails asking for things. Do as they say. Tell sols that some deposit comes from gift. Sol will ask you to sign a gift form and for your parents to provide proof of funds for AML purposes.
optional: purchase a survey, look up companies locally and get quotes. If house is old get a structural report.
wait for forms from sols, sign them. You may also have to send them money for searches (£250ish) either now or earlier.
transfer deposit money: to do this, you will need to now club all money from your accounts together into one transaction to send to sols.
mortgage does the rest for you.
exchange contracts = legally binding. If you pull out, they get the deposit money. Up until this stage either party can pull out with no repercussions (you may have costs with the solicitors)
complete = you get the keys, it’s yours

Lilyhatesjaz · 14/04/2023 17:16

I would advise you to go for a local solicitor not one miles away suggested by the mortgage broker, a mistake we made.

Original poster

house887 · 14/04/2023 17:39

luckystarg · 14/04/2023 17:05

You decide yes or no on the house. You put in an offer. My experience has always been that if it isn’t a competitive market then to go under. EA will speak to seller and tell you yes or no, you can then increase. Do not go above what you think it’s worth.

Once sale is agreed (or potentially to agree the offer) you will provide EA with proof you can afford it, either by getting your broker to call them and confirm or speaking to their mortgage adviser in house or by showing an AIP.

I would never use the in-house adviser personally. Mine is also free.

Next steps are:

find a mortgage broker if you don’t have one. Some are free (make money on commission of house going through) the others charge a fee (they ALSO get commission but you lose money if sale isn’t completed)
find a solicitor - look up local ones or ask friends. They do not need to be local to you but it helps.
tell EA your solicitor details
now EA and solicitor can speak directly with the seller’s solicitor
you will now receive different emails asking for things. Do as they say. Tell sols that some deposit comes from gift. Sol will ask you to sign a gift form and for your parents to provide proof of funds for AML purposes.
optional: purchase a survey, look up companies locally and get quotes. If house is old get a structural report.
wait for forms from sols, sign them. You may also have to send them money for searches (£250ish) either now or earlier.
transfer deposit money: to do this, you will need to now club all money from your accounts together into one transaction to send to sols.
mortgage does the rest for you.
exchange contracts = legally binding. If you pull out, they get the deposit money. Up until this stage either party can pull out with no repercussions (you may have costs with the solicitors)
complete = you get the keys, it’s yours

Thank you so much I think this is the clearest explanation I’ve seen. Very grateful for you taking the time to comment

OP posts:

WelshNerd · 14/04/2023 17:42

There is a great series on All 4 called "The property chain" which really goes into the process of home buying/conveyancing.

dfkdfc · 14/04/2023 17:44

If you want it, put in an offer to the estate agent. If and when you have an offer accepted, find a solicitor (not one recommended by the vendors estate agent).

How exciting.

SweetSakura · 14/04/2023 17:45

luckystarg · 14/04/2023 17:05

You decide yes or no on the house. You put in an offer. My experience has always been that if it isn’t a competitive market then to go under. EA will speak to seller and tell you yes or no, you can then increase. Do not go above what you think it’s worth.

Once sale is agreed (or potentially to agree the offer) you will provide EA with proof you can afford it, either by getting your broker to call them and confirm or speaking to their mortgage adviser in house or by showing an AIP.

I would never use the in-house adviser personally. Mine is also free.

Next steps are:

find a mortgage broker if you don’t have one. Some are free (make money on commission of house going through) the others charge a fee (they ALSO get commission but you lose money if sale isn’t completed)
find a solicitor - look up local ones or ask friends. They do not need to be local to you but it helps.
tell EA your solicitor details
now EA and solicitor can speak directly with the seller’s solicitor
you will now receive different emails asking for things. Do as they say. Tell sols that some deposit comes from gift. Sol will ask you to sign a gift form and for your parents to provide proof of funds for AML purposes.
optional: purchase a survey, look up companies locally and get quotes. If house is old get a structural report.
wait for forms from sols, sign them. You may also have to send them money for searches (£250ish) either now or earlier.
transfer deposit money: to do this, you will need to now club all money from your accounts together into one transaction to send to sols.
mortgage does the rest for you.
exchange contracts = legally binding. If you pull out, they get the deposit money. Up until this stage either party can pull out with no repercussions (you may have costs with the solicitors)
complete = you get the keys, it’s yours

Agree with all of this

Original poster

house887 · 14/04/2023 17:52

WelshNerd · 14/04/2023 17:42

There is a great series on All 4 called "The property chain" which really goes into the process of home buying/conveyancing.

Thanks will give this one a watch tonight

OP posts:

Crabwoman · 14/04/2023 18:06

Just be aware of chains.

So if you offer on the house and it's accepted, the current owners of that house will then need to locate a house they want to purchase and complete the same process as you (except their deposit will usually be equity). The owners of that house may need to, and so on...

The longer the chain, the longer the sale takes (usually). All properties in the chain have to exchange and complete on the same day, with all the properties cleared and vacant by an agreed time.

So it can mean the process can be long and protracted. It is also why chain free properties are popular. Some sellers look to break the chain by moving into rented accommodation.

This may not be an issue for you, but worth keeping in mind.

CurlewKate · 14/04/2023 18:29

@house887 I will- but not until you've done your homework and tidied your room!

Original poster

house887 · 15/04/2023 08:57

Crabwoman · 14/04/2023 18:06

Just be aware of chains.

So if you offer on the house and it's accepted, the current owners of that house will then need to locate a house they want to purchase and complete the same process as you (except their deposit will usually be equity). The owners of that house may need to, and so on...

The longer the chain, the longer the sale takes (usually). All properties in the chain have to exchange and complete on the same day, with all the properties cleared and vacant by an agreed time.

So it can mean the process can be long and protracted. It is also why chain free properties are popular. Some sellers look to break the chain by moving into rented accommodation.

This may not be an issue for you, but worth keeping in mind.

Thank you we’re not in a huge rush

OP posts:

StressedToTheMaxxx · 15/04/2023 17:08

luckystarg · 14/04/2023 17:05

You decide yes or no on the house. You put in an offer. My experience has always been that if it isn’t a competitive market then to go under. EA will speak to seller and tell you yes or no, you can then increase. Do not go above what you think it’s worth.

Once sale is agreed (or potentially to agree the offer) you will provide EA with proof you can afford it, either by getting your broker to call them and confirm or speaking to their mortgage adviser in house or by showing an AIP.

I would never use the in-house adviser personally. Mine is also free.

Next steps are:

find a mortgage broker if you don’t have one. Some are free (make money on commission of house going through) the others charge a fee (they ALSO get commission but you lose money if sale isn’t completed)
find a solicitor - look up local ones or ask friends. They do not need to be local to you but it helps.
tell EA your solicitor details
now EA and solicitor can speak directly with the seller’s solicitor
you will now receive different emails asking for things. Do as they say. Tell sols that some deposit comes from gift. Sol will ask you to sign a gift form and for your parents to provide proof of funds for AML purposes.
optional: purchase a survey, look up companies locally and get quotes. If house is old get a structural report.
wait for forms from sols, sign them. You may also have to send them money for searches (£250ish) either now or earlier.
transfer deposit money: to do this, you will need to now club all money from your accounts together into one transaction to send to sols.
mortgage does the rest for you.
exchange contracts = legally binding. If you pull out, they get the deposit money. Up until this stage either party can pull out with no repercussions (you may have costs with the solicitors)
complete = you get the keys, it’s yours

How do you know if it's a competitive market? And if it is, how do you know how much to offer? Is it generally a specific % above or below the asking price?

I'm in Scotland, I know that there is a difference between buying houses here and down in England (not sure what though!).

Bobshhh · 15/04/2023 17:12

The estate agent will normally contact you after the viewing to ask for your feedback and whether you’re making an offer - we had to submit ours on an online tool.

SparklingChampagneAndStrawberries · 15/04/2023 17:17

Lilyhatesjaz · 14/04/2023 17:16

I would advise you to go for a local solicitor not one miles away suggested by the mortgage broker, a mistake we made.

Seconded. These online cheapie ones are crap. Ours always took ages to get back to us and missed something quite important on our sale. You get what you pay for after all.

A full house survey is really important. We once pulled out of a house purchase after the surveyor advised it would cost around £50k to get the house into shape. We didn’t want a doer-upper. Yes, we lost £700 but we actually saw it as money well spent and now live somewhere lovely.

TomeTome · 15/04/2023 17:19

Always always always remember the estate agent works for the seller NOT you

Thelittleweasel · 15/04/2023 18:33

@house887

As you say the Scottish system is different. There are two systems "Fixed price" which simply means that you offer and pay the price asked. Where they want "offers" that is in excess of the listed price! Probably 10%+ more! They will often ask for offers by a particular date and - if accepted - that commits you! I would seriously suggest you speak to an "advocate" [as solicitors are called in those parts!]. Be aware that having offered and been accepted - unlike in England - there are penalties for dropping out so - for example - you need 100% firm mortgage in place. Best of luck!

Thebigblueballoon · 15/04/2023 18:42

StressedToTheMaxxx · 15/04/2023 17:08

How do you know if it's a competitive market? And if it is, how do you know how much to offer? Is it generally a specific % above or below the asking price?

I'm in Scotland, I know that there is a difference between buying houses here and down in England (not sure what though!).

Show quote history

Scotland is a completely different kettle of fish! We’ve just been through the process and it’s stressful. In our case, the house was “offers over” and it was hugely competitive.
You have to submit your best offer via a solicitor by the closing date (if one is set - in high interest houses this is almost always the case) and then wait. Knowing what to offer is a total minefield. Depending on the area (we’re Edinburgh), houses have been going for between 2% and 40% over the home valuation report. Bare in mind when you’re making your offer that you can only get a mortgage based on the HV report - you’ll have to stump up the rest in cold hand cash.

We bid on a detached three bed cottage with large garden (the type of house you’re offering on makes a huge difference, cottages with gardens are ridiculous 🙄. Flats, apparently, don’t usually go over by nearly that much) and we offered 29% over HV. And we were only the second highest bidder! Ridiculous. Luckily the owners went with us. It was a huge risky process and we were afraid of over-offering - but you just have to do your best based on the notes of interest and what you can afford.

Lcb123 · 15/04/2023 18:46

Just one thing on your deposit-don’t start moving money around too soon as the process can take a while. And when we bought with part gifted from my dad, the solicitor wanted my dad to transfer the money straight to solicitor bank accounts not via us. So check with solicitor about this.

SoCunningYouCanStickATailOnItAndCallItAFox · 15/04/2023 18:47

Some sales move quickly. First house I bought was no chain on either side and it was viewed and completed in one month!

Use a 'whole market' mortgage broker, they have to be registered and insured etc they will be able to find best deal out of all on the market, they are independent.. Brokers which are not whole market will be affiliated to certain company/deals and you might miss out on a better deal.

Justenjoyinglife · 15/04/2023 19:04

make sure your deposit is easily accessible and you move it out of any savings accounts with a notice period before you exchange. When we sold our first place, the buyers were first time buyers. They had no idea that the deposit needed to be readily available when we exchanged. Our seller was close to pulling out of the sale due to the time it was taking and we had to take a huge risk and exchange without their deposit as it wasn’t instantly accessible. In hindsight a big risk but their solicitors hadn’t advised them at all

Namechange98765432 · 15/04/2023 20:13

Great advice here - I'm also a ftb and doing it all on my own 😬

To add, I got a lot of information from the Money Saving Expert site First time buyers guide - some nice clear info there too.

I have had offer accepted, funds substantiated, mortgage approved and survey done - so things are moving.

I used L&C brokers for the mortgage, recommended by MSE, and must say they were very helpful and it was quite straightforward. The anti money laundering stuff is the most complicated - a gift letter, and screen shot of the funds in the account it is coming from will be asked for (amongst other bits and pieces).

Good luck!

StressedToTheMaxxx · 15/04/2023 20:15

Thebigblueballoon · 15/04/2023 18:42

Scotland is a completely different kettle of fish! We’ve just been through the process and it’s stressful. In our case, the house was “offers over” and it was hugely competitive.
You have to submit your best offer via a solicitor by the closing date (if one is set - in high interest houses this is almost always the case) and then wait. Knowing what to offer is a total minefield. Depending on the area (we’re Edinburgh), houses have been going for between 2% and 40% over the home valuation report. Bare in mind when you’re making your offer that you can only get a mortgage based on the HV report - you’ll have to stump up the rest in cold hand cash.

We bid on a detached three bed cottage with large garden (the type of house you’re offering on makes a huge difference, cottages with gardens are ridiculous 🙄. Flats, apparently, don’t usually go over by nearly that much) and we offered 29% over HV. And we were only the second highest bidder! Ridiculous. Luckily the owners went with us. It was a huge risky process and we were afraid of over-offering - but you just have to do your best based on the notes of interest and what you can afford.

Show quote history

That's it, you don't want to over offer but then you don't want to under offer as you'll lose out!

I did live in Edinburgh but am now in Dundee which thankfully is much cheaper than Edinburgh. Still not cheap though.

Luckily I'm currently staying in a relatives property rent free in exchange for looking after it while they're away/upkeep and will be in this position for the next year or two, giving me time to save up a sizeable deposit. Which I'll need judging by property prices at the moment!

Commonsensitivity · 15/04/2023 20:18

Any offer you make should be subject to survey. You can also ask them to take off the market but they may not agree.
Never buy a leasehold property. Check it's freehold.