Step-by-step guide to buying a home

OUR step-by-step guide to buying a home explains everything you need to know, from saving for a mortgage deposit to making an offer and moving in

Buying a home is a complex and often lengthy process — but if you can get your head around the basics of how it works, you're less likely to be taken by surprise along the way and your home-buying experience will be easier.

Find out how much you can borrow

The amount a mortgage provider will lend you will depend on various things, including the size of your deposit, your income and credit score. If you're buying a property with other people, the lender will also take their finances into account.

Generally speaking, banks will allow you to borrow a certain percentage of your (monthly/ annual) salary, but this varies depending on the individual lender, your financial circumstances and the size of your deposit. Remember to budget for the additional costs of buying a property, such as conveyancing, surveys, and — depending on the cost of the property and whether you're a first-time buyer — stamp duty

Research your chosen area

If you're exploring towns or neighborhoods you haven't lived in before, it can be worth spending a night or two in the area to check out the commute, shops, restaurants and general atmosphere.

Even if you've lived in the town all your life, it's important to do some research on the area you want to buy in before signing on the dotted line.

Things to look into include School catchment areas: prices can be higher in the catchment areas of highly rated schools.

Transport links: being close to a railway station or motorway access can push up a property's value.

Local infrastructure plans: new commercial and housing developments could improve local services, but they could also worsen traffic and pollution levels. Flood zones: check flood maps to ensure the area isn't at risk. Crime levels: check the frequency and types of crime using the police.uk website.

Apply for a mortgage agreement in principle

A mortgage agreement in principle (AIP) is a confirmation from a mortgage lender that they would, in principle, be willing to lend you a certain amount. It can also be known as a decision in principle (DIP). Having an AIP can make you a more attractive buyer, as it shows the seller and their estate agent that you will be able to secure the amount of money you need to buy the property.

Register with estate agents

Once you've chosen the area (or areas) where you're interested in buying a home, register with local estate agents.

Registering is free and won't create any obligation on your part. Keeping in touch with local estate agents could increase your chances of finding your ideal home, as agents sometimes contact registered buyers before listing a property online.

View properties in person

You'll inevitably spend plenty of time browsing property portals, but it's important to view properties in person, as well as online.

Viewing homes in real life will give you a deeper understanding of their potential (or lack of it) and you'll be able to gauge whether they give you that indescribable ‘feeling' that you can't get from a screen. When you find somewhere you like, it's worth viewing it more than once, and at different times of the day, as you'll be more likely to notice any potential problems.

Make an offer

Deciding exactly how much to offer can be tricky. It's quite common to offer below the asking price, but it all depends on the individual property. If other people are interested or it's a particularly hot market, you may need to offer the asking price or more. Looking at how much other similar properties in the same neighbourhood have recently sold will help you work out how much the property is worth.

Once you've decided how much to offer, you can tell the estate agent over the phone or in person, but it's worth putting it in writing too.

Mention any points that stand in your favour — for example, if you're a chain-free first-time buyer — and say that your offer is subject to a survey and the property being taken off the market. This can reduce the chances that you'll be gazumped.

Find a conveyancer or property solicitor

Conveyancing is the legal process that takes place after your offer is accepted.

This includes carrying out searches, drawing up and checking contracts, dealing with the Land Registry and paying any stamp duty. You can use a conveyancer — who might not be a qualified solicitor but will specialise in property — or a solicitor, who you should check has recent experience in property law.

Get a house survey

House surveys help to assess the condition of the building and detect structural problems.

Although a survey is optional, it's better to be aware of any issues before buying so you can make an informed decision on how much to offer and budget for any repair work required.

A survey could also enable you to either negotiate the purchase price down or ask the seller to fix any problems.

Surveyors registered with the Royal Institution of Chartered Surveyors (Rics) provide three ‘levels' of survey, while those registered with the Residential Property Surveyors Association (RPSA) offer two levels. The cost will depend on the location, size and type of property. Don't confuse the valuation survey conducted by your mortgage lender with a house survey - they are two different things and you should always have your own survey done independently.

Find out more about house surveys, including how much they can cost and how to find a surveyor.

Arrange home insurance

It's vital that you have buildings insurance in place on your new home from the day you exchange contracts — in fact, most mortgage providers will make this a condition of lending. This is because you are legally boud to buy the property from the moment contracts are exchanged, so if the building were to be flooded or burned down before the day of completion and you weren't insured, you wouldn't be covered. If you're buying a new-build property, the insurance doesn't need to come into effect until the day of completion.

Exchange contracts

The exchange of contracts happens when the buyer's and seller's legal representatives swap signed contracts, and the buyer pays the deposit.

Before the exchange of contracts, you'll need to have several things prepared in advance, such as a written mortgage offer, an agreed completion date and building insurance in place from the day of exchange (or from completion if you're buying a new building). After you've exchanged contracts you can breathe a sigh of relief, as the agreement for you to buy the property is now legally binding.

The chances of anything falling through from this moment are extremely low.

Your conveyancer will lodge an interest in the property, enabling you to pay the seller and apply to the Land Registry to transfer the deeds to your name.

Complete and move in

Completion often takes place around two weeks after the exchange, but this is flexible and you can agree on a convenient date with the seller. On completion day, the money will be transferred to the seller and you can then collect the keys from the estate agent and move into your new home.

Next comes the much more enjoyable task of starting to furnish and decorate the property to your taste — and maybe even taking a moment to simply relax.

You'll have earned it! — which.co.uk