Buying a new home can be a complex process so it is important that you seek independent financial and legal advice. Your mortgage advisor and solicitor will both be working on your behalf, taking care of the financial and legal side of your homebuying journey. But what exactly will they be doing? This guide takes away the jargon so you can see exactly how the process works.
The financial and legal side of things
FIND A MORTGAGE ADVISOR
There are many different mortgages out there, including fixed rate, tracker rate and interest only. A mortgage advisor can talk you through all appropriate options. They can also guide you on timings to ensure your application ties in with the completion date for your new home.
Your friendly Sales Executives are on hand to offer all the advice you’ll need to help get you started on your homebuying journey. Ask us for more information about our panel of trusted mortgage advisors who can assist you throughout the whole process, ensuring everything runs as smoothly as possible.
CHOOSE A SOLICITOR
A solicitor will handle all the legal aspects of your purchase, including your contracts, give legal advice, do local searches, and deal with the Land Registry. Your Sales Executive can provide you with a list of our recommended solicitors. They’ll be used to working with us so will help get things moving during your reservation period.
You will need to provide your solicitor some key information so that they can get started including:
- Proof of your identity, such as a passport or driving licence
- Proof of your current address, such as a utility bill or council tax bill
Then prior to exchange they will need:
- Proof of funds, including up-to-date bank statements and a copy of your
mortgage offer from your lender if you are taking out a mortgage.
- Proof of insurance on the property, which will need to come into force from
the date of exchange.
WHAT HAPPENS NEXT?
Now you’re getting the right advice and services from the right professionals, your homebuying journey can move through the different financial and legal stages and onto completion. The steps are:
1. SECURING A MORTGAGE OFFER
Your mortgage advisor will help you to apply for a mortgage that suits your needs. Once your application is in, your lender will arrange a valuation of your new home and then, if your application is approved, you will receive your mortgage offer. Be sure to check all the details are correct and let your mortgage advisor know if there’s anything that doesn’t look right. Otherwise, you’re good to go.
2. YOUR SOLICITOR WILL CHECK DRAFT CONTRACTS
They’ll make sure all the details are correct, including the price, details of any buying scheme - if you’re using one, deposit amount, title deeds, fixtures, fittings, and contents. Then they’ll send you a draft copy to read.
3. YOUR SOLICITOR WILL CARRY OUT SEARCHES
These searches are to check there aren’t any issues before you buy your new home. These could cover things like ownership of the property, access to the property and any restrictions or planned changes in the local area which you should be aware of as a home owner.
4. YOUR SOLICITOR WILL FINALISE CONTRACTS
When you have a formal mortgage offer, and you and your solicitor are happy with the search results and any queries that have been raised, you pay your deposit and sign your contract. Now we can exchange contracts.
5. PREPARING FOR COMPLETION
Once your new home has been through our quality control process and received a Buildmark Cover Note from the NHBC, we’ll give you and your solicitor 10 days’ notice of the legal completion date. Your solicitor can then make all the final preparations for completion day.
6. COMPLETION DAY
Once you’ve paid your legal costs, it’s over to your solicitor to wrap up the final legal details. They’ll transfer ownership to you and transfer your funds to us, so you can complete. Your new home is legally yours.
SOME GOOD ADVICE - Start looking for home and contents insurance early and give yourself time to find the right cover. You will need to have your buildings insurance in place prior to exchange.
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