Buying A House Process – Money Timeline

Everyone knows that buying a house is a long and expensive process. Yet, not everyone realizes that apart from the property cost, there is a set of other expenses. Without them, it would be simply impossible to go through the complete process. The detailed buying a house process – money timeline typically goes as follows:

Estimating your budget

Even before you start looking for the house of your dreams, you should carefully evaluate your budget and figure out what you can afford. Your savings should be enough to cover the first deposit and the mortgage fees, which may be as high as  £2000. Then, you should check your credit report and talk to your bank representative – he/ she will be able to tell what mortgage plans you are eligible for (the consultation is free).

Making your offer

After that, you can start looking for houses. If you find something you like, you can make an offer. The offers are typically made via real estate agents. As a rule, agents represent sellers and, consequently, sellers pay the fees. If you want to hire a buyer’s representative, which is not necessary, you will be the one paying for your agent’s services.

Hiring a solicitor

While hiring a buyer’s representative is not necessary, hiring a solicitor is. He / she will be the one evaluating the property, checking if there may be any issues, undermining the property value, and so on and so forth. An average solicitor’s fee is £500-1500. Plus, after closing the deal, the solicitor will charge you 10% of the fee in advance. Typical property survey may cost up to £1500, and it includes building survey (minimum £600), homebuyers report (£400 and more), and home condition survey (about £250). All of them can be ordered separately.

Finalizing the deal and the mortgage

If you are ready to buy, you will have to contact your bank and finalize your mortgage. Some lenders do not charge any mortgage fees, while other companies require an up to £2000 upfront payment just for finalizing your mortgage.

Going through the contracts

The representatives exchange contracts that have to be carefully reviewed. Plus, you might be asked to place a deposit (up to £1000) to prove that your intentions are serious. If you do so, ask for the house to be taken off the market for the time of revising the contracts – otherwise, a more generous buyer may outbid your offer.

Transferring money

Total house value is transferred through your representatives. This is almost free – apart from a small £25-50 bank transfer fee. Plus, do not forget about the solicitor’s fee – you will pay them at this point.

Moving in

Apart from the moving company services, ranging from £300 to £600, moving in is technically free. Yet, if there isn’t any furniture for you to move, you will still have to consider your future interior. At the very least you are going to need some kitchen equipment and a bedroom collection . Those are the bare essentials, and the price range on them will mostly depend on the store  and your own preferences.