For many people, buying property represents the largest purchase they will ever make. Therefore, as a first-time buyer, this could be the most momentous event of your life thus far. This realisation alone can be anxiety-inducing, making this time potentially very stressful, particularly if you don’t prepare adequately.
On the other hand, you might be experienced in property purchases and adding to your portfolio; nonetheless, I’m sure you would agree that these transactions should be regarded as significant milestones.
Given the significance of this occasion, it deserves to be approached with careful consideration and ample time. Rushing into it with excessive excitement or stress can lead to avoidable mistakes that may have financial consequences down the road.
Budget
When purchasing a property, it’s crucial to tighten your budget and have a realistic understanding of what you can comfortably afford each month.
Transitioning from renting to a mortgage agreement involves significant changes in financial commitments.
To avoid potential debt, it’s important to thoroughly evaluate your monthly income against your expenses. This assessment will help you determine the affordability of a mortgage.
Obtaining a mortgage agreement in principle from your preferred lender based on this assessment will provide clarity on how much you can borrow and what you can realistically afford. This preparation allows you to act swiftly when you find a potential dream home.
Survey
We understand the significant costs involved in purchasing a property. Often, it’s the hidden expenses that accumulate in the background, which may not be initially considered.
However, it’s crucial not to cut corners when these additional expenses arise, as they often represent critical steps in the process.
It’s surprising how many buyers solely rely on their lender’s property valuation.
We cannot stress enough the importance of engaging an experienced surveyor to thoroughly inspect the property and identify potential issues that could arise in the future. This proactive step can save you thousands in future repair and maintenance costs, allowing you to negotiate a purchase price that accounts for any necessary repairs.
Research
Nobody wants to move into their supposed ‘dream house, only to realise that the location doesn’t meet their expectations.
For instance, if you work night shifts but end up living near a school, you might find yourself regularly disturbed by noisy schoolchildren during the day.
Conversely, a family could relocate only to realise that the new location makes the school run overly challenging due to distance or heavy traffic, necessitating an earlier departure.
Thoroughly researching the desired area before making a move is crucial to ensuring it aligns with your lifestyle and future plans.
Visit the area at different times of the day and on various days of the week to gauge traffic patterns and identify nearby amenities. Consider practical scenarios like needing to buy milk late at night—is there a convenient nearby store? These details are essential to investigate before committing to a new location.
Expenses
As previously mentioned, purchasing a property entails numerous hidden costs beyond budgeting for your mortgage.
It’s important to differentiate between budgeting for your mortgage and accounting for moving-in expenses, as they are distinct financial considerations.
Expenses such as hiring a removal firm should be factored in, as they can strain your budget significantly. We recommend researching reputable companies with positive reviews and obtaining at least three quotes to compare costs.
Additionally, other expenses to account for include the fees of a conveyancer, which we will discuss further below. There are also administrative fees related to transferring an existing mortgage or updating details for building insurance, as well as the transfer of utilities (water, broadband, and energy) to your new property.
Conveyancing
This step is crucial and can ultimately save you money in the long term if you enlistthe services of a trusted professional.
As expenses accumulate during this process, it may be tempting to cut corners and opt for the cheapest option. However, hiring a conveyancing specialist with the appropriate qualifications will prove to be more cost-effective in the long run.
Selecting a solicitor’s firm that is a member of the Law Society’s Conveyancing Quality Scheme (CQS) ensures the firm’s dedication and investment in maintaining exceptional levels of client care, staff training, and procedural standards. The scheme is endorsed by prominent industry bodies such as the Council of Mortgage Lenders, the Building Societies Association, and the Association of British Insurers. Only conveyancing firms regulated by the Solicitors Regulation Authority (SRA) can become CQS members, though not all SRA-regulated firms are part of the CQS. Buyers can verify a firm’s CQS accreditation through the Law Society’s “Find a Solicitor” service on their website.
It is common for estate agents to recommend specific conveyancing services, often due to ongoing referral fees from these conveyancers that incentivize business. Many homebuyers, unfamiliar with the intricacies of the process, may rely on estate agents’ recommendations. Our advice is to seek recommendations from friends and family to find a conveyancing service that has proven reliable and trustworthy.
Emotions
Purchasing a property, whether alone or with a partner, often stirs up strong emotions for most individuals. It’s common for people to make decisions based on their feelings rather than logic during this process.
Acting impulsively due to excitement can lead individuals to rush into buying a property that may not actually suit their needs.
Prioritising emotions over practicality can result in costly mistakes when making such a significant purchase. Those who do so may find themselves regretting their decision and repeating the same mistakes when they hastily purchase another property a few years later.
In such situations, it’s advisable to slow down and take a measured approach to property buying. Create a list of must-haves and deal-breakers, and once you’ve identified a property you like, carefully weigh its pros and cons. Be realistic and thorough in your assessment, as a minor issue now could become a major headache later on.
Contact Us Today
Whether you are embarking on your first home purchase or are an experienced buyer with a substantial portfolio, our conveyancing specialists possess the expertise to guide you through every stage of the process. DLS Solicitors provides a comprehensive range of legal services tailored to support you throughout your property purchase journey.
