So you’ve put in an offer on your dream home and it’s been accepted. Hurrah! However, before you start popping the champagne there are a few important things you should take care of at this stage that require speed and organisation.
Ideally you’ll already have your mortgage in principle and proof of available funds prepared as well as a reputable solicitor instructed before you make an offer - so here’s what to do next.
Apply for a mortgage
Once your offer is accepted, it’s time to apply for your mortgage. Ideally you’ll have been talking to a mortgage broker already and received your Agreement in Principle. If this is the case you simply need to call and notify them to submit the application. If you’re dealing directly with a lender, you must move quickly to complete and submit your mortgage application.
Lenders typically require photo identification, proof of current address, three months bank statements to prove income, credit card or personal loan statements and at least three months of payslips along with a P60 from your employer or personal/company account statements if you’re self employed.
Prepare your deposit
For a large sum of money (which lets face it most deposits these days are) your bank will often need a fair bit of notice to withdraw before they’ll release the funds. It’s also conceivable that your deposit may be tied up in funds or investments which will require notice to withdraw. Put your notice in early to avoid delay.
Take out insurance
Your mortgage lender will talk to you about insurance however it’s good to consider what kind you might require early in the process. There are three different types you might want to consider:
Buildings insurance covers the structure of your property against things like fire and subsidence, whereas contents insurance covers all the items within, from your telly to your curtains.
Life insurance will cover mortgage payments in the case of a policy holder’s death, which protects your partner or dependants from the responsibility.
Income protection and critical illness cover will cover your payments or clear your debt in the event of long term or critical illnesses where you are unable to work.
Book a Survey
It’s usually the buyers responsibility to book a survey. It may alert you to issues you need to be sorted before you complete so it pays to do this sooner rather than later. Your agent will be able to recommend a reputable surveyor for you to use so make sure you ask!
The most popular type of survey is the Level 2 Survey (HomeBuyer Report). A Level 1 Survey (Condition Report) is the most basic type of survey and a Level 3 (Building/Structural) Survey is typically used for larger, older and unusual homes. You might also hear about a Snagging Survey, which is particularly for new-build homes.
If you are unsure about which survey to choose, your surveyor can recommend the best survey for the property you’re buying.
Hire a solicitor
It is highly recommended you hire a solicitor to conduct the searches and enquiries around your property purchase. It takes specific legal experience to do a thorough and efficient search, and much of this stage will take place between the buyer’s and the seller’s solicitor.
Again, it really pays to go for a reputable, local solicitor and your agent will no doubt be able to recommend someone that they have worked with previously. A good solicitor is worth their weight in gold when buying a property so steer clear of online services even if their price point seems more inviting.
Once these bits of admin are in hand you can start thinking about the smaller details like moving, decorating and renovations and start to get excited to settle into your new home. It’s worth remembering that the right estate agent should be there for you throughout this process to advise you, recommend local experts and to keep you informed every step of the way. It’s the very least you should expect!
For more tips on buying, renting and selling properties in Surbiton and Thames Ditton, take a look at our other helpful articles here.
