Navigating the purchasing process of your new build home
These days more people are starting to invest in new-build homes over period properties. In fact, recent government data found that the value of a new build home increased by 23% compared to only 6% more older homes. New builds are soaring through the property market, and now is the time to invest in one.
Before you invest in a new build home, read this step-by-step guide to make sure you have covered your basis.
Understand your budget and outline your expenses
Buying a home isn’t just the deposit and your mortgage payments. There are many other payments that you need to consider and budget for. For example, you need to think about mortgage fees, stamp duty (if it applies to you), reservation fees, solicitor fees and any renovations you need to do. If you don’t own furniture, you will also need to purchase this as well.
The upfront costs of buying a home can add up very quickly and you need to be prepared. Set your budget and calculate all these costs to make sure you can afford to buy a new build home right now.
Research builders and developers
New builds often don’t need much upgrading as they are brand new. However, you might want to add a few personal touches or change the layout if it doesn’t work for you. Before hiring a contractor, check their track record, and building materials and see if they offer any incentives like deposit contributions.
It’s important to work with a builder that you trust and can rely on. Buying a new build home is a huge commitment and you don’t want to end up in a tricky situation.
Secure your mortgage in principle
A mortgage in principle is an estimate from your bank that gives you an idea of how much you can borrow. You can give this to your estate agent to show that you’re a serious buyer who can afford to buy a home.
Once you have reserved your house
You have found the home of your dreams and you can afford it, now what? You need to find a property solicitor to oversee the legal side of buying a home. They will protect you against fraud and ensure everything looks legally correct.
However, of course, a solicitor comes with an added cost. For properties up to £1 million, you will probably pay between £1,000 to £3,000 in solicitor fees. It depends on the location, scale and complexity of the transaction too.
You also need to inspect your home during the different development and building stages. It’s best to hire a professional to carry out the internal plumping and wiring of structures if you’re doing a renovation. You don’t have the risk of making a mistake and costing yourself more money down the line.
Finally, you need to close and finalise the deal. Tie up any loose ends and ensure all your fees have been paid correctly.
Buying a home is a long process, but it’s always worth it in the end.