When purchasing a property, there are many stages throughout the buying timeframe you need to face before you can finally call the property yours. During these stages, there are multiple factors that can get in the way and extend the process unnecessarily.
In this article, we discuss the different stages you go through after your offer is accepted and how you could potentially speed up the process of purchasing your dream home.
Stage 1 – Your offer is accepted
Finally, you found the home of your dreams, and your offer is accepted, but that doesn’t mean the property is yours just yet, as nobody is contractually obliged.
The 2 G’s
The buyer and seller are not legally bound until the signed contracts are exchanged, so there’s always the chance you could be gazumped or gazanged. Have you heard of these terms?
Gazumping is when another buyer offers more money to the seller even after your offer has been accepted, reversing your deal. To avoid the possibility of this happening, it’s common to ask the seller to take the property listing off the market.
Gazanging is where the seller decides to cancel the sale and not sell the property. A shift in the market could trigger this, potentially increasing the value of their property in the future.
Both are decisions made by the seller, making it hard for you to avoid them. Either of these decisions could result in a financial loss. This is why speeding up the buying timeframe is extremely important, as you are vulnerable until the exchange of contracts.
Stage 2 – Apply for mortgages
When purchasing a property, you are most likely going to need a mortgage to make this happen. Mortgage offers normally only stay valid for 30 to 90 days, depending on the lender. Ensure you complete thorough research when applying for mortgages, and don’t just accept the first offer.
By completing thorough research ahead of time, you can shorten the timeframe of your property purchase, as it can take as long as a couple weeks to over a month for a mortgage offer and approval.
Stage 3 – Discover a Conveyancing firm
Conveyancing is the legal process of transferring property from one person to another. Conveyancers are lawyers who specialise in property and complete all the legalities of exchanging property. It’s important to choose the right conveyancing firm that is reliable and offers clear communication. By choosing your conveyancing solicitor firm ahead of time, you can speed up the process.
Stage 4 – Property searches and surveys
While your mortgage application waits for approval, your conveyancing solicitor can begin to complete the necessary searches that are advised.
These searches come at a cost but are sometimes required by the mortgage lender.
When purchasing a property, it is highly recommended to get a property survey completed. This will highlight any hidden issues that may not be spotted with the naked eye. By having a property survey completed, this allows you to negotiate price reductions or repairs before the final transaction goes through.
The lender will complete their own mortgage valuation of the property to see if they are prepared to lend you the mortgage. The lender completes this process because the bank would repossess the property if the mortgage repayments weren’t met.
Stage 5 – Mortgage offer
Your mortgage offer is accepted! Now it’s time to check your offer thoroughly and ensure that everything is accurate. A mistake as small as a misspelt name could cause delays and expenses, extending your wait.
Transferring your deposit
You’re almost ready to exchange contracts, which means transferring your deposit to your solicitor. Most banks don’t allow large sums of money to be moved in a short span of time, so you may need to contact your bank to organise this.
Signing your contract
At this stage, you will now sign the contract and commit to buying the seller’s property. The transaction still isn’t fully completed yet though!
Stage 6 - Exchange contracts
Finally, your solicitor and seller’s solicitor will swap signed contracts, and this is known as the ‘exchange in contracts’. Once completed, it’s time to celebrate! This exchange is legally binding between you and the seller, and now neither of you can retract it.
Your solicitor will deliver paperwork with a clear breakdown of the contract and any remaining costs of the property transaction.
Signing the transfer deed
The transfer deed is a contract that confirms you are taking ownership of the property; it needs to be witnessed and sent to the seller’s solicitor.
Paying for the property
The solicitor will arrange the payment to the lender, and this will kickstart the mortgage. You will receive proof that the seller’s mortgage has been cleared from the property, and you will begin yours.
Stage 7 – Move into your new home
It’s time to collect the keys and move into your new home! You can now start paying off your mortgage and begin your journey on the property ladder.
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