Home Buying Process

It is better to find how much you can borrow before you look for a property, this knowledge will prevent any dissapointment and enable you to choose to voew properties that are within you budget. Consider your income as well any any commitments you already have in place. Always shop around as there are many different types of mortgages. Current interest rates should be taken into consideration, would you be able to make the repayments that the mortgage entails. Interest and insurance are usually included within your monthly installments. Interest is a percentage that is charged for the money that you have borrowed. Your lender may charge you a percentage for any additional costs entailed in the mortgage. These percentages will all start to add up, make sure what you are being charged for and whether you actually need all the payment protect you have been offered.

There are four simple steps to buying a home:

• Step 1 - To save up a decent deposit towards a property.
• Step 2 - Shop around to find the right mortgage for you.
• Step 3 - Find the property you wish to buy and make an offer, negotiate the deal and take legal steps to exchange contracts.
• Step 4 - Move in and start living your life.

Step one - Mortgage Deposits

Deposit
Most UK mortgage brokers offer mortgages of upto 95% of the value of the property. There are some lenders who will be offering 100% mortgages, but you will probably have to pay more interest for such a mortgage as the lender will consider an 100% mortgage more of a risk. It is safe to say that you should try to save up at least 5% of a property's value as a deposit. If you really don't think that you will be able to save up the 5% or believe it will take you far too long, then you could actually take out a UK loan in order to raise the deposit you require for a property.

Step Two - Find a UK Mortgage
One of the most important things to think about when purchasing property is how much you will be to borrow for a mortgage. UK mortgages are worked out based on your income, and should be going to enter into a mortgage with a partner then you may be able to borrow more money due to the joint income. 100% mortgages can be found but you should realise that you will more than likely have to pay a higher rate of interest on a hundred percent mortgage.

How much can I borrow?
Always keep the amount that you borrow within your ability to pay. You should feel comfortable with your monthly repayments and not stretch yourself too much. Mortgage lenders may lend you up to four or five times your annual salary , but the Financial Services Authority do not recommend it, they advise that any single person should only borrow up to three times their salary and a couple would be advised to borrow 2.5 times their joint income. Different calculations are used by different lenders when it comes to calculating how muchthey will borrow you in terms of a mortgage. Most mortgage lenders accept a deposit of 5%. It's a fact that the larger your deposit the better it will be for you in the long run, as you do not pay interest on the deposit.

Mortgage Protection Insurance
Whether the amount that you borrowed is £10,000 to £250,000 the repayments have to be made by you or your partner and if anything happened to either member that is named on the mortgage then the other would have to find the repayments on their own. If a member of your family is unable to work and repayments cannot be met mortgage protection insurance will be of benefit to you. If your partner dies then you may find it hard to keep up repayments on the property. Persistant non payments could lead to the repossession of the property. A lender would then try to resell the property in oreder to regain the debt they are owed. A life insurance policy can be taken out to cover this situation. Life insurance gives protection incase of death at any time whilst Term Insurance covers only a stipulated amount over a stated length of time

STEP THREE - Finding a Property You Want To Buy
search the estate agents windows and look at property papers. Once you have found the property that you like there are certain procedures that you must follow to make sure that the purchase is of a sound investment.

Estate Agents
Looking for a home can take up a lot of your time, if you are working long hours odds are you will only have the weekends to search for a propertyto buy. That’s why alot of people use the estate agents to perform the task of finding a home for them. You can give them a list of criteria that you wish the property to have such as location, number of bedrooms, a garden you may only be interested in period properties or you may be looking for something really contemporary. Estate agents will have lists of contacts of homes in your required area, they will know which proerties are within your price range and they can forward on the details to you and arrange convinient viewings for you.

Mortgage Fees
Buying property with a mortgage loan can be one of the biggest investments you make, it can be a very confusing and time consuming, you may come across charges and mortgage fees that that you did not think about. It is sensible to take the advice that is available to you and to be very sure that it is what you want before signing anything.

Surveys
A property valuation will be carried out so that the mortgage lender can see the size of the loan they would be prepared offer on the property. The home buyer’s survey and valuation report has to check the condition of the property and the surrounding area. Fees will vary for such surveys as it depends on the size, condition and value of the property.

Legal Expenses
These legal procedures are processed by a solicitor and a conveyancer, they will contact the seller’s team and complete any paperwork that is necessary. They ensure that the name on the property deeds is transferred and that the land registry fees are received. These proceedures will change the legal ownership of the property, stamp duty is also recognized.

Exchange of Contracts
When both parties have agreed on a price and are satisfied, contracts can then be exchanged between the seller and the purchases solicitors. Both parties are now legally bound to the sale and the purchase of the property.

STEP FOUR - Moving In
Moving day and living in the property can be the most overlooked stage in property purchasing. There will of course be the removal company fees that have to be paid for. Things such as gas, electricity, water and telephone companies have to be informed of the change of ownership. Electrical goods such as cookers and washing machines have to be fitted. Companies that you deal with will have to be informed of your change of address. If you have to change doctors or dentists you will have to register with your local surgerys. Mail will need to be redirected.