How do you buy a property?
To purchase a new home, it is essential to determine the maximum price you can afford. This calculation should be based on your income, lifestyle, and overall financial circumstances. It is advisable to establish your budget before viewing properties or making offers to sellers or estate agents.
Once you have determined your budget and secured a deposit—typically between 5% and 30% of the property's value—you can proceed to make an offer to the seller or estate agent. This offer may match the asking price or be lower, depending on negotiations. If your offer is accepted, the next step is to arrange financing through a mortgage.
To secure a mortgage, you can apply directly to a lender or work with an independent mortgage broker to obtain an Agreement in Principle (AIP) or Decision in Principle (DIP). These preliminary approvals indicate that a lender is likely to finance your purchase, subject to final checks and conditions. If your mortgage application is successful and the seller accepts your offer, your solicitors can then handle the legal aspects of the property transaction in coordination with the seller’s solicitors.
In the current property market, competition among buyers is intense due to a limited supply of properties. This means you are often in direct competition with other prospective buyers. Completing the necessary steps—such as securing an AIP/DIP and gathering your deposit—can take anywhere from one week to three months, depending on the availability of appointments, lender workloads, or the need to save or secure deposit funds from family or friends. If delays occur, other buyers who are better prepared may outpace you in the process.
For instance, buyers who already have their deposit ready and an AIP/DIP in place can make the same or a similar offer on the property. Sellers often favor these buyers, as they are positioned to complete the transaction without delays. This competitive environment can lead to missed opportunities and frustration if you are unable to act quickly.
To avoid repeated disappointment, it is crucial to prepare thoroughly by saving for your deposit, obtaining an AIP/DIP, and ensuring all necessary documentation is in order. Doing so will place you in a stronger position to secure your desired property.
So, how I can help you?
I bring 25 years of experience as a financial adviser and mortgage broker, including 22 years specializing in buy-to-let mortgages, commercial finance, and pension finance.
I can offer the flexibility to meet in person or conduct a modern online consultation to understand your needs and financial circumstances comprehensively. During our discussions, we will address key considerations such as safeguarding your property, securing the mortgage, and protecting your lifestyle and family’s well-being.
To get in contact please email platinumfirstfinance@pm.me or call me on 02922 160121
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