Buying a New Home - About
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What are the key steps in buying a new home?
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The 7 key steps to buying a New Home are:
- First, start looking, even if it is just for preliminary research. Remember it may take you up to six months to get what you want, so start the search today.
- Talk to a home loan provider to see how much you can borrow – this will make your searching quicker and less stressful as you will know exactly how much you have to spend. Fill in an application form and gather together all of the relevant documents that the provider requires. If you are approved you will usually get a Letter of Offer in 3 working days.
- Get yourself a conveyancing solicitor to do the legal work for you.
- If you have found a home you like, you will then need to pay a booking deposit to the Agent handling the sale of the home. This is subject to contract, which means that either you or the seller can back out of the contract prior to the exchange of contracts. Your home loan provider will then arrange a valuation of the property.
- Arrange your Insurance (Home) and Assurance (Life-mortgage protection). Do this in plenty of time because this is the most common reason why mortgage cheques are not issued for the agreed closing time.
- A formal offer when all of this is received will be given by your provider and you then go through this with your solicitor and sign and return it to your provider with supporting documentation and direct debit form. On exchange of contracts you will need to pay your non-refundable deposit. This commits both sides to the sale.
- On closing the sale you will need to send your mortgage cheque to your solicitor and then you can pick up the keys to your new home.
TIP! - Contact any of the providers or brokers in our Finance A-Z to talk through this process or to gather more detailed information.
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What products do I need in order to buy a new home?
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You will need the following:
- A Home Loan to finance the purchase of your new home
- A Solicitor to do the conveyancing work for you
- Home Insurance in order to protect your new home
- Life Assurance - mortgage protection to protect your home.
All of these products and suppliers can be found here in our Finance A-Z
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After I apply, what further information will I need to gather together?
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In General, You will need:
- Your latest P60
- A completed salary certificate completed by your employer stating your role and amount earned
- Your last 3 payslips
- Six months of current bank account statements
- Six months of loan account statements
- Any savings statements
- A copy of your passport or drivers licence
- An original Utility Bill
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If I am self-employed what will I need?
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In General, You will need:
- Copies of your last 3 months bank statements
- A copy of your latest trading profit and loss and balance sheet with a completed accountants report.
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If I am building my own home what will I need?
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In General, You will also need:
- A copy of your planning permission
- A copy of the architects drawings
- And a copy of your building contract
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Where can I get a home loan?
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You can get a home loan from many sources including the banks, building societies and mortgage brokers. The main difference between a building society and a bank is that a building society is a mutual society. This means that it is owned by its members who are generally the people who save with and borrow from the society. Brokers offer home loans on behalf of multiple banks and building societies.
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Check out our home loan providers and home loan brokers in our Finance A-Z.
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