Buying process and dealing with estate agents

There is no wrong or right way to approach the homebuying process but there is certainly a logical order that should help you be more successful and help things run more smoothly when the right property comes along.

Ideally, you’ll want to do your sums before you begin looking at properties; there can be few things more disappointing than searching for months for your dream home, only to be told you cannot get the finance you need to purchase it. Getting a professional whole of market mortgage broker involved when you are ready to take the plunge is always wise, although you can check out your own credit score before you even do this. Most credit reference agencies offer a free trial; just remember to cancel when you have your report. Doing this yourself will prevent multiple searches on your credit record which could damage your chances. Simply make sure you tell the broker and subsequently the estate agent you have already done your own credit check and maybe take it with you when you visit them.

When you approach a broker or visit a chosen bank or building society, take proof of your income (payslips if you are employed, accounts if you are self-employed), identification (passport or driving licence, usually) and proof of your address and expenditure (bank statements). This will allow them to carry out an accurate ‘affordability assessment’ so they can work out what you can borrow. Every mortgage lender is different so a broker will find you the best fit whilst the bank or building society adviser can only tell you what their organisation can help with. At this point, you need to put aside your deposit funds (savings etc). The broker can advise you on moving costs, stamp duty, valuations etc. It’s also good to look at solicitors once you have a property shortlisted.

Estate Agents work for the sellers of the property (known as vendors), not for you as buyers. They earn their money for selling the property for the maximum price with the minimum hassle for their clients and often as quickly as possible. Therefore, approach the information they provide you with carefully and get your solicitor or broker to clarify anything you are not sure about. An agent will often ask you for an ‘agreement in principle’ – a specific credit score carried out by a specific lender. Showing them the copy of your credit record should help put theirs and their vendors’ minds at rest, however, if they insist then you can obtain this from your broker or lender directly.

Once the vendor or agent has accepted your offer, it’s time to finalise your mortgage application and engage more fully with a solicitor. Brokers and Solicitors will really help with the process and are both willing to help you in communications with the estate agents. Once the lender has assessed your income, outgoings and credit score, they will arrange a surveyor to value your prospective new home. Once this is over, you should receive a formal mortgage offer, which means the money is on the table when the solicitor asks for it. At this point, your solicitor will take over and complete the requirements before you can exchange contracts (when you and the vendor legally commit to the sale) and, ultimately, a completion date (when you get the keys and invariably move in).

March 2018