Planning to buy your dream home but not sure where to start? Don’t worry, below mentioned is a step-by-step process to get one step closer to achieving your dream. From finances to paperwork, we’ve got you covered.

Step 1: Get your finances in order

Like most people, you will need to apply for a mortgage to buy your first house. You have to show the lender that you can:

  • Afford to make the down payment
  • Make the scheduled repayments every month
  • Have a good credit score
  • Decent debt-to-income ratio

Step 2: Determine how much money you can borrow

Before you take a look at various properties, you need to determine how much you can borrow. Having a realistic budget in mind is ideal so that you do not get heartbroken when you find a house that you like that is not in your budget. Below mentioned is a way to get an idea of what you can borrow:

  • Get in touch with several lenders

Start by talking to your bank to check and see how much you can borrow. Keep in mind, that they might not offer you the best deal on a mortgage.

  • Consult a mortgage broker

A mortgage broker has the knowledge and experience to identify the right deals for you. However, you must be aware that some mortgage brokers charge a fee for their services. Make sure you ask beforehand.

Step 3: Save up for your down payment

You can borrow up to 85% of the property’s value. But if you save enough money and make a bigger deposit, it means that you will need to borrow less leading to making lower monthly mortgage payments.

Step 4: Make the right offer

Once your finances are in order and you have saved enough for your deposit, the next step is to actively hunt for properties. You can either speak to an estate agent or look for homes online. If you come across a property that you like but do not know how much you should offer, do not worry, just follow the below-mentioned tips:

  • Research the area and the going prices going around.
  • Enquire how long the property has been on the market.
  • See if the bidding is sealed

Step 5: Apply for the mortgage

Once your offer gets accepted, it is time to get ahead and apply for the mortgage. The mortgage application will include:

  • Photo identification such as driving license etc.
  • Proof of current address
  • Last three payslips
  • Proof of deposit like a bank statement

Once the sale is complete and your mortgage application gets approved, you will need to present proof of building insurance.

Step 6: Conveyancing

While the mortgage lender is processing your mortgage application, your solicitor will undertake a property search which will include:

  • Building Control
  • Planning permissions
  • Drainage and water searches
  • Environmental searches

Step 7: Exchange contracts and confirm your completion date

After the mortgage application has been approved, and the solicitor is happy with the property search, it is time to exchange contracts and finally get your keys to your dream home. Before that, you will need to pay for it. You will not pay the seller directly and will deposit the funds in the solicitor’s client account. The solicitor will then forward it to the lender. After that, you will need to agree to a completion date. This is where you will get the keys to your new home.

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