The Home Buying Process: A Step-by-Step Guide

Whether you’re a first time buyer or an existing homeowner, buying a new home is an exciting milestone that deserves to be celebrated. The homebuying process can seem long and complex, but we’re here to help break down each step in the timeline for buying a house. 

Our handy guide covers everything you need to know about the process of buying a new build house, from applying for a mortgage to exchanging contracts.  

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Your homebuying roadmap

Before you start

Finding and reserving your home

Mortgage and financing

Legal checks and surveys

Exchange, completion and moving in

Home Buying FAQs

Your homebuying roadmap

The process of buying a home follows a clear pathway from the initial search to moving in. You'll begin by exploring developments and viewing show homes, then reserving your chosen property with a deposit. Remember to check your eligibility for any schemes like Deposit Unlock or Deposit Boost when buying with a 5% deposit, or Part Exchange if you’re moving from one home to another.

After this, the mortgage application and conveyancing process follow, then the exchange of contracts and completion of the purchase.

1. Before you start

Discover the initial steps in the homebuying process below for a smooth, hassle-free purchase.

Assessing your budget and affordability

Start by working out how much you can afford to spend on buying a home. Consider the type of property you’d like to buy and your ideal location. This will give you an idea of your budget and help you determine how much you need to save for a deposit.

Read our guide on how much you can borrow for a mortgage for more advice.

Saving for your deposit

Saving for a deposit is vital when buying a home. Larger deposits can:

• Help you secure a lower interest rate, meaning lower monthly repayments

• Help you cover other costs of buying a house, including Stamp Duty, survey and legal fees

• Give you a good starting point to furnish your new home

If you’re struggling to save for a deposit, browse low-deposit schemes to kickstart the homebuying process. Learn more about saving for a deposit in our handy guide.

Understanding other costs

It’s important to be aware of the other costs involved in homebuying. This includes:

• Valuation, broker and reservation fees, as well as early repayment charges

• Arrangement and booking fees

• Legal and conveyancing fees

• Third-party fees and disbursements

• Stamp Duty Land Tax (SDLT)

To find out more about what you can expect, take a look at our guide to the cost of buying a new home.

Getting a Mortgage in Principle (MIP)

A Mortgage in Principle (MIP), also known as an Agreement in Principle (AIP) or a Decision in Principle (DIP), indicates how much you can borrow from a lender. It typically involves a credit check to understand your financial circumstances.

You can get an AIP online or at the lender’s branch. Either way, you should receive the results within 24 hours. An AIP doesn’t guarantee that your mortgage application will be accepted, but it increases the chances. It also shows lenders that you’re serious about buying a home. Once approved, AIPs are typically valid for 90 days.

Our Mortgage in Principle guide has more useful tips to help you navigate this stage.

2. Finding and reserving your home

Viewing and reserving a home are among the most exciting parts of the homebuying process.

Viewing properties

When deciding on a new home, viewing properties that meet your needs in areas that you love is essential. New build developments also often feature show homes; this way, you can really get a feel for what life would be like in a similar property. It can be a good idea to shop around before settling on a home.

Making an offering or reserving your home

The offer and reservation process differs slightly between new builds and older homes. As new builds have a set price, you often reserve these rather than making an offer in the traditional sense. For an older home, you may be able to negotiate on price via the offer process, this is usually done through an estate agent.

Some things to consider when weighing up an offer include:

• Don’t offer more than you can afford. Remember to factor in the extra costs on top of your mortgage and offer an amount you’re comfortable with.

• Get fixtures and fittings in writing. Ask the seller to include everything they’re leaving behind, from light fittings to built-in wardrobes.

   

3. Mortgage and financing

Once you’ve settled on your desired property, you will need to apply for a mortgage.

Types of mortgages

There are various mortgage types, from fixed and variable-rate to offset and tracker mortgages, so you can find the right option for you.

• Fixed-rate mortgages lock your interest rate for a set period (typically two to five years), providing payment certainty.

• Variable-rate mortgages fluctuate with market conditions and include tracker mortgages that follow the Bank of England base rate, and standard variable rates set by individual lenders.

• Guarantor mortgages are ideal for those with a small deposit or lower income. This mortgage type allows a relative to use their own property or savings to legally guarantee mortgage payments if the buyer defaults.

• Tracker mortgages allow transparency for buyers, and follow the Bank of England base rate, with your interest rate moving up or down in line with it.

Choosing the right mortgage

Choosing the right mortgage depends on your financial situation, risk tolerance and future plans. Consider how long you plan to stay in the property, as this affects whether fixed or variable rates suit you better. Calculate the monthly payments you can comfortably afford and compare the overall cost, including fees.

Using a mortgage broker or financial adviser

You can seek advice from a lender or mortgage broker. They have extensive knowledge of the property market and can recommend the best options for your circumstances. If you’re unsure about using a broker, our comprehensive guide can help.

Documentation required for a mortgage application

The mortgage application process can take a few weeks, as it involves checking your credit record and valuing your property.

You’ll also need the following documents:

• Photo ID, such as a passport or driving licence

• Proof of address, such as utility bills or council tax bills

• A P60 form from your employer

• Payslips from the last three months

• An SA302 form or accountant’s certificate if you’re self-employed

• Bank statements from the last three to six months

• A signed letter from the donor if you’re being gifted funds

• Proof of benefits

If you are self-employed, this list may also include tax returns or extra proof of income. For more, check out our guide to the documents you need to get a mortgage.

4. Legal checks and surveys

From conveyancing to additional property surveys, there are a few important processes to follow after applying for your mortgage.

Conveyancing and legal checks

Solicitors and licensed conveyancers play an important part in the homebuying process. They handle the legal aspects of the purchase, from drafting contracts to transferring property ownership.

They also:

• Check the property’s legal title

• Manage the exchange of contracts and completion

• Collect and transfer money

• Conduct property searches, including local authority, environmental and drainage

Our step-by-step guide to the conveyancing process explores the ins and outs of working with a solicitor.

Valuation and property surveys

The lender will conduct a valuation survey, which is an assessment of the property to estimate its value.

You may want to arrange a house survey with an expert surveyor to ensure the house doesn’t have significant structural issues. There are three types of property surveys:

• Condition Survey (Level 1). This is a general overview of the property’s condition.

• Homebuyer Survey (Level 2). This is an in-depth survey of the property’s condition, inside and outside.

• Building Survey (Level 3). The most comprehensive type of survey.

If the survey identifies major faults, you could renegotiate the selling price to reflect the additional costs.

Learn more about arranging a house survey in our guide.

5. Exchange, completion and moving in

Once the valuation survey is complete and you’re happy with the results, you can finalise your mortgage.

Exchanging contracts

The most important part of the homebuying process is exchanging the contracts, as it binds you to the purchase. You typically have seven days to think it over before accepting.

If you’re ready to proceed, you should receive the contract to sign from your solicitor. Read it carefully to ensure that all details are correct. Once you’ve exchanged contracts, you’ll need buildings insurance. This protects you from the costs of repairing and rebuilding your home in the event of damage.

Explore the different types of home insurance in our guide to find the right one for you.

Completion day

Completion day marks the end of the homebuying process. It usually occurs two weeks after exchanging contracts, but this may vary. Completion is when you receive the keys to your new home and can finally start making it yours.

Read more about completion day in our guide.

Moving checklist

Moving into a new home is exciting, but it can take a lot of planning. We’ve put together a checklist of tips to help your move go as smoothly as possible.

Before moving day:

• Gather packing supplies early. Boxes, bubble wrap, tape and markers for labelling.

• Sort belongings room by room. Decide what to keep, donate or discard

• Book a removal company. Do this well in advance and compare quotes from several providers.

On moving day:

• Set aside valuables. Keep valuables, important documents and medications with you.

• Take final meter readings. Note down your gas, electricity and water readings before leaving.

• Pack an overnight bag. Ensure you have essentials for your first night in the new home to hand.

After arrival:

• Prioritise security. Check you have keys for all internal and external doors, and secure all windows and doors before settling in.

• Locate and test utilities. Locate essential features like the fuse box, stopcock and boiler and test utilities to ensure everything is working correctly.

• More meter readings. Take meter readings at your new property upon arrival.

Explore our moving day checklist to ensure a stress-free move.

Browse brand-new, energy-efficient homes across the UK. Find homes in various sizes, from 2-bedroom to 5-bedroom – perfect for first time buyers, investors and growing families.

Discover unique offers for a hassle-free move, like our Part Exchange and Movemaker schemes. Contact our Sales Advisers today to get started on your homebuying journey.