Offer accepted - Next?

beckstas-money

Hi,
We’ve had a offer accepted for a property yesterday. First person in our family to buy on the open market apart from a couple RTB’s so really stuck for advise.

Are we supposed to instruct a conveyancer now? I’ve been getting quotes and they vary so much. Do we take out home buyers insurance before selecting solicitor?

thanks

user1977

beckstas-money said:

Do we take out home buyers insurance before selecting solicitor?

I wouldn't bother taking it out at all, chances are you won't be covered when you'd hope to be. Search for previous threads here about it.

moneysavinghero

Yes you will need to instruct a conveyancer now. Whether you take out homebuyers insurance or not is up to you, it is not compulsory.

You will also need to make a full mortgage application.

beckstas-money

Thank you. Without doing the insurance would you suggest to put in the full mortgage application before instructing the conveyancer?

moneysavinghero

beckstas-money said:

Thank you. Without doing the insurance would you suggest to put in the full mortgage application before instructing the conveyancer?

You usually do both at the same time. Your mortgage provider may only work with certain conveyancers so check with your chosen conveyancer that they are on the panel for your mortgage company.

moneysavinghero

Have the owners of the house found somewhere to buy yet? If they have not you may wish to hold back on everything until they have.

Justonemorecupoftea

Speak to your estate agent to establish whether the "chain" is complete e.g. everyone has a buyer/somewhere to move. I wouldn't spend any money until this is done.
Instruct a conveyancer.
Apply for your mortgage.
Get quotes for a survey and get it booked in.
Work out when to give notice on your current home (assuming you're renting).

Spend the next 12/14/16+ weeks in limbo.

beckstas-money

No, they haven’t found anywhere yet. So we’ll line up the solicitor’s and sit tight. Is there any harm doing the full mortgage application now? I am aware that it only lasts for 6 months. Just anxious to see if we will actually get approved 🙈 . When we get mortgage approved if there are changed in the price after survey, what happens? Will we need to do another application? If anything it will be lower brcsuse we went £10k over asking price for a “do’er up’er”

eddddy

beckstas-money said:

No, they haven’t found anywhere yet. So we’ll line up the solicitor’s and sit tight. Is there any harm doing the full mortgage application now? I am aware that it only lasts for 6 months. Just anxious to see if we will actually get approved 🙈 . When we get mortgage approved if there are changed in the price after survey, what happens? Will we need to do another application? If anything it will be lower brcsuse we went £10k over asking price for a “do’er up’er”

In very, very general terms, you might decide to walk away from property purchase for a number of reasons including...

• Conveyancing / Legal reasons (e.g. your solicitor finds problems in pre-contract enquires, searches, etc)
• Mortgage reasons (the mortgage lender 'doesn't like' the property, or finds a problem with your finances)
• Survey (the survey finds some significant problems)

For speed, people usually arrange all 3 of those things in parallel. The downside is that if you find a problem with one of those things (e.g. your mortgage gets declined following deeper assessment of your finances), and you walk away - you've lost all 3 lots of fees.

So some people choose to do them one after the other - starting with the 'riskiest' thing first. But that takes much longer - which might annoy some EAs and some sellers. So much so that the seller might even get fed up waiting, and look for another buyer who's prepared to move faster.

As others have said, there's also the question of waiting for the chain to complete (searches and mortgage offers usually exprre after 6 months).

Plus sellers sometimes change their mind about selling - for example, if they can't find a good place to buy, and/or they just get fed up with hassles and delays.

(If you agree a lower purchase price following the survey, you won't need to go through the whole application again - it should be a much quicker process.)

beckstas-money

That’s very useful. Thanks. We have booked in to apply for the full application now