Buying a first property is a significant milestone in a person’s life that is often the culmination of several years of saving. And while this is an exciting and promising time, it can also feel daunting and cause considerable stress. The process of buying a house is not always smooth sailing and there are many factors to consider that are often overlooked. 

There are lots of different stages to buying your first home that can make the process feel particularly lengthy and - unfortunately - there can be hidden costs along the way that can creep up on unsuspecting first-time buyers and cause some serious worry. 

Here, the expert residential conveyancing solicitors at JMW break down the house-purchasing process into digestible, easy-to-understand steps in an attempt to cut through the noise and take the stress out of what should be a positive and exciting experience. 

Step 1: Saving for a deposit 

The bigger the deposit you can save, the better the mortgage deals you will be able to access, often with lower interest rates. While saving for a deposit is usually the lengthiest part of the process, it is often worth saving for longer if it means you can make the most of better deals that will cost less in the long run. 

You will usually require at least 5% of the total cost of the property you want to buy as a deposit. This means if you wanted to purchase a home worth £250,000 with a 95% mortgage, you would need to save £12,500 of your own money and borrow the remaining £237,500.

First-time buyers can get help with saving for a house deposit by paying into a Lifetime ISA, which provides a 25% top-up from the government in addition to what you save. 

Step 2: Find out how much you can borrow 

The amount you can borrow depends on the size of your deposit, along with your income and your credit score. There are many mortgage calculators online that can help you to determine how much you’ll be able to borrow before you take the step of speaking to lenders directly. 

At this stage, it’s also important to consider the additional costs associated with buying a home that might not be immediately obvious. Factor in spending on conveyancing surveys and stamp duty, depending on the cost of the property. 

Step 3: Decide where you want to live 

One of the most important steps in the entire process is deciding where you want to live. For many, this is the area they already reside in or have grown up in, while for others, it’s a totally different town in a different part of the country. It’s best to draw up a list of the factors that are most important to you and your family. These could be: 

• The distance to work 
• School catchment areas 
• Transport links 
• Number of shops and restaurants 
• General atmosphere and sense of community 
• Crime levels 
• Local infrastructure plans 

Whatever factors that you view as a priority, carrying out research or potentially booking a short trip to visit any areas of interest will help you get a general feel of the place. 

Step 4: Apply for a mortgage in principle 

This step takes place when you have found a lender that would, in principle, be willing to lend you a certain amount towards the price of your home. Having one of these will make you a much more attractive buyer, as it shows that you are able to secure the amount of money required to purchase the home. In fact, many estate agents will ask if you have a mortgage in principle before allowing you to view homes, particularly in a crowded market in a popular area. 

Step 5: View properties 

Any existing homeowners can probably recount tales of trawling through Rightmove and Zoopla on the lookout for their perfect home, and now you get to join in. Once you’ve found some properties you like, you can contact the estate agents and ask to set up a viewing. 

Visiting homes in person will give you a better understanding of their potential and allow you to imagine how the property will work for you and your family. If you find somewhere that you particularly like, you should consider viewing it more than once and at different times of day so that you can look out for any issues and get a real feel for the atmosphere. 

Step 6: Make an offer 

In the vast majority of cases, a prospective buyer will make an initial offer that is less than the asking price. However, if there is interest in the house from multiple parties, you may need to offer the asking price or more. 

This is usually carried out over the phone with the estate agent. You should always mention any points that could make you a more attractive buyer here too. For example, if you’re a first-time buyer you are not part of a chain, which means you would be able to move in more quickly. 

If you are unsure how much to offer on the property, look how much similar homes in the same area have recently sold for. 

Step 7: Apply for a mortgage 

Now is the time to think about the type of mortgage you want to apply for and how long you want to spend paying it off. The most common mortgage types are: 

• Fixed rate: You pay the same interest rate for the entire duration of the deal, regardless of interest rate changes elsewhere. 
• Standard variable rate: Where the rate is dictated by the lender and can be changed at any time, particularly if there are rumours that the Bank of England could increase their rate in future. 
• Tracker: The interest rate tracks the Bank of England base rate and changes the amount you pay accordingly. 

Using a mortgage calculator will help you to understand how much your monthly payments would be based on different interest rates and mortgage terms. 

Step 8: Enlist a conveyancing solicitor 

Your solicitor will carry out a series of checks on the property, such as searches, as well as drawing up and checking contracts, dealing with the Land Registry and paying stamp duty on your behalf. 

Step 9: Have the property surveyed 

A survey should be carried out as part of any house purchase to assess the condition of the building and look for any structural problems. It is important to note that surveys are optional. However, it is better to be aware of any issues before the transaction goes through so that you can reduce your offer - or pull out entirely - if any issues are detected. 

Most surveyors provide a condition report, a HomeBuyers report and a building survey, with the cost largely depending on the location, size and type of property you are interested in. 

Step 10: Find a home insurance policy 

Having buildings insurance in place on your new property is essential from the day you exchange contracts. Most mortgage providers will make this a condition of lending, as it means that you would have protection in place in the unlikely event that the building were to be flooded or burn down before the date of completion. 

If you are buying a new-build property, the insurance would not need to come into effect until the date the transaction completes. 

Step 11: Exchange contracts 

Contracts are exchanged when both the buyer and seller’s legal representatives have signed the contracts. Before this takes place, you will need to have several things prepared including a written mortgage offer, an agreed completion date and buildings insurance in place. At this stage, you will also pay the deposit. 

This is also when your conveyancing solicitor 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. 

Once the contracts have been exchanged, the chances of the transaction falling through are very low, so the end is very nearly in sight! 

Step 12: Completion and moving in your new home 

The date of completion is often around two weeks after the exchange, but sometimes this can happen on the same day. This is when the money will be transferred to the seller and you can then collect the keys from the estate agent and move in to your new property.