HERE TO HELPHouse Purchase Information
We understand that buying a property can be a daunting process, but at Airborne Mortgage Solutions we’re here to help you with some useful guidance.
HOUSE PURCHASE INFORMATION
Surveys, credit scores and the process itself
Whilst the information here might not cover every element of house purchase, we’ve included the topics which we are most commonly asked about.
All surveys are not created equal
Having a survey carried out on a property before you commit to buying makes financial sense, potentially saving you thousands of pounds in repair bills for issues which you might otherwise not have noticed.
There are, however, various types of survey available and we are happy to help you choose the option that best meets your needs.
It’s important to recognise that a mortgage valuation isn’t the same as a structural survey. The valuation is undertaken by your lender to assess whether the property you want to buy is sufficient security for your loan. It won’t tell you about the state of the property or show up any underlying faults in the way that a survey does.
Here is a quick guide to the 3 main types of survey available:
RICS Condition Report
This is the most basic form of survey, and is aimed at new-build and conventional homes in good condition.
RICS Homebuyer Report
The next level up, this well identify structural problems and common problems such as subsidence or damp.
RICS Building Survey
The most comprehensive survey, this covers a full inspection and give professional advice on any repairs that may be required and the likely costs involved.
Of course, even if the surveyor reports problems that need to be remedied, you can still decide to proceed with the purchase and use the survey findings to renegotiate the purchase price.
In Scotland, sellers must have a Home Report available for would-be purchasers, carried out by an RICS-qualified surveyor. New-build, converted homes, or properties purchased under Right to Buy don’t have to have a Home Report but we would always advise that purchasers consider having a survey carried out for their own peace of mind.
Why your credit score matters
Mortgage lenders look carefully at how you manage your finances when assessing your mortgage application. If you want to qualify for a competitive mortgage rate, then you need to have a good credit rating. When a potential lender reviews your application, they’ll look at your credit report at one or more of the main credit reference agencies such as Experian or Equifax.
Generally, the higher your credit score, the better your chances of getting a good mortgage product at a lower interest rate.
Simple steps like paying your utility bills or making existing loan repayments on time, increasing your monthly credit card repayments, registering on the Electoral Roll and not taking on additional borrowing before you make your mortgage application, can help improve your chances of having a good credit score.
It pays to check your credit score and if it’s not as good as it could be, take steps to improve it before you make your mortgage application.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
THE ROUTE TO PURCHASE
What are the main stages in buying a property?
Whilst no two property purchases are exactly the same, there are some milestones which are common to most. Here’s a quick guide to the process from beginning to end:
Contact your adviser to discuss your plans
With your adviser, work out how much you can afford
Draw up a budget to cover legal costs, surveys and mortgage fees
Make your application and get a mortgage agreed in principle
Start looking for a property you can afford
Make an offer
Expect your lender to arrange a mortgage valuation on the property
Appoint a solicitor or conveyancer who will start the searches and legal work
Arrange a survey (in Scotland review the Home Report and arrange a survey if necessary)
Finalise your offer and agree your formal mortgage offer
Arrange to get your deposit to your solicitor
Exchange contracts (England and Wales) or agree the contract (Scotland)
Arrange buildings insurance to start from date of exchange of contracts
Arrange completion and pay stamp duty if applicable
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