The steps to buying a house generally follow this process:
- Assess Your Readiness and Finances
- Make sure you are emotionally and financially ready to buy a home, considering your long-term goals and job stability.
- Check your credit score and improve it if needed, as it affects mortgage rates and approval chances.
- Set a budget based on your income, debts, and savings, and determine how much you can afford to borrow
- Save for a Deposit
- Save for a house deposit, typically around 20% of the purchase price, plus extra for buying costs like legal fees and taxes
- Get Mortgage Pre-Approval
- Shop for the best mortgage rates and get pre-approved by a lender. This shows sellers you are a serious buyer and helps define your price range
- Find Your Dream Home
- Search for homes within your budget, visit properties, and take notes or photos to compare features and issues
- Make an Offer
- Once you find a suitable home, make an offer with the help of a real estate agent. Negotiate if necessary until the offer is accepted
- Secure Your Mortgage
- Finalize your mortgage by submitting required documents for underwriting and loan approval
- Conduct Property Survey and Inspection
- Arrange a property survey and home inspection to check for structural or maintenance issues. Use findings to negotiate repairs or price adjustments if needed
- Arrange Buildings Insurance
- Obtain homeowners insurance as required by your lender to protect your investment
- Complete Legal Process (Conveyancing)
- Engage a solicitor or conveyancer to handle legal paperwork, title searches, and contracts. Prepare for exchange of contracts, which legally binds the sale
- Exchange Contracts and Pay Deposit * Exchange contracts with the seller and pay the deposit, usually 10% of the purchase price, to secure the sale
- Prepare for Completion and Move In * Arrange final mortgage payments, complete the purchase, and organize your move into the new home
- Complete Final Steps * On completion day, the remaining funds are transferred, ownership is legally transferred to you, and you receive the keys
This process can take from about 12 weeks to several months depending on circumstances such as mortgage approval speed and legal conveyancing
. In summary, the key steps are: assess readiness, save deposit, get mortgage pre-approval, find a home, make an offer, secure financing, inspect the property, arrange insurance, complete legal work, exchange contracts, and finally complete the purchase and move in
