Firstly, congratulations on getting this far to buying a house! You have managed to get your mortgage approval in principle, and found the perfect house. However, the journey is not over yet. Setting your heart on a property can be very exciting, but getting hold of your dream home takes a few more steps. In this blog post, we will outline what happens after you have decided that this is the house for you.
How long is it from finding a property to moving in? It varies. It depends on what you are buying and what are the plans of the person you are buying from. Do they have to find a property, is the property vacant, are you buying a new build, etc. It is very important to have this conversation at the outset with the auctioneer, so you have a timeline to work towards with your broker.
Booking Deposit when Buying a House
Once you have your bid accepted by the auctioneer, you proceed to pay your booking deposit to the auctioneer. When buying a house, booking deposits vary but are normally in the range of €5,000 and €10,000. Make sure you confirm that this deposit is refundable and obtain a receipt. You will need to produce this receipt to the lender to show where some of your savings have gone. This booking deposit will also count towards the final deposit you are putting into your home.
Valuation before Buying a House
After you have put your booking deposit, the next step is to get in touch with your broker. They will be able to ensure the property is mortgageable. You may have done this already before placing a bid. So at this stage, your broker will arrange a valuation. The valuation will be carried out by an independent valuer to establish that the price you are paying is correct and that the property is in a good state of repair.
If there are issues that the valuer thinks need further investigation, then the valuer will ask for an inspection from an engineer. In most cases, if the property is in good order, no engineer’s report will be required. Some people do however decide to have an engineer look at a property for their own piece of mind. Especially, if the property is old, a good broker should be able to give you their opinion as to whether they think a report is needed or not.
Planning Compliance Check
While the valuation is going on, you will also have enlisted the help of your solicitor. Their job is to make sure the property you are buying is planning compliant. Furthermore, they will confirm that the person selling the property is allowed to sell it, and that it can be put in your name. The solicitor does this by way of a contract of sale which they receive from the seller’s solicitor.
After the Valuation, you will receive your mortgage offer. This is a very important document as it is contract between you and the lender. The mortgage offer spells out the terms and condition of your loan which once agreed on is set in stone as long as you keep up your payments. Your solicitor will read through your offer with you to make sure it is correct. Once the contract of sale is accepted by your solicitor, they will invite you to go over the contract and mortgage offer. All going well, you will sign contracts and offer. At that point, your solicitor will ask you for the balance of your deposit. Once you sign the offer and give the deposit, you are almost there.
Fully Protected Mortgage
You should move in 2 to 4 weeks and no turning back. Before meeting you solicitor you will have had a meeting with your broker who will put life cover in place to protect the mortgage. Mortgage protection is a requirement and the basic protection of your mortgage. However, you may wish to explore income protection in the event that you can’t work as you will still need to make the mortgage repayments.
Happy House Hunting!