Buying your own home is the biggest purchase anyone will ever make.
Yet despite the average property price coming in north of £250,000, most buyers go into the process completely blind.
Nobody explains the full timeline. As a result, they don’t know what to expect and the process often stresses them out.
A lot of home-buying timelines fail because of unforeseen problems.
If you understand how the process works ahead of time, it becomes far easier to manage.
Let’s take a look at how the home-buying process works…
What you’ll pick up:
- How Long Does The Home-Buying Process Take?
- The Step-By-Step Home-Buying Timeline
- Why You Need Income Protection Throughout This Process
- How To Shorten The Home-Buying Timeline
How Long Does The Home-Buying Process Take?
Expect the home-buying process to take between 4-6 months from start to finish.
Keep in mind that 3 months is around the average. Some buyers take as little as 12 weeks. Others take 8 months or more.
Property chains, slow mortgage decisions, and unresponsive solicitors are usually the cause of delays.
Each step of the home-buying timeline directly impacts the next.
If you fail to get your mortgage agreement sorted first then you’ll find it difficult to place an attractive offer on a home.
Partnering with knowledgeable mortgage advisors in London is key for protecting your income and getting the ball rolling.
The Step-By-Step Home-Buying Timeline
The home-buying process can be easily broken down into stages.
Here’s what you can expect at each step…
Get Pre-Approved With A Mortgage Agreement In Principle
This should be the first thing you do when learning how to buy a house.
A Mortgage Agreement in Principle (AIP) is a lender’s way of saying “yes” to your mortgage application. The amount they’re willing to lend you is confirmed.
You can expect most lenders to deliver your AIP within 24 – 48 hours.
This is the stage where you want to partner with specialist lenders.
Getting an AIP proves to sellers that you’re serious. It’s also proof that you have the funds to complete the purchase.
Look For The Right Property To Buy
Time to find your dream home. Or at least the house you’ve been searching for.
Whether you’re looking for a detached house, semi-detached house or townhouse, knowing your options is crucial.
This stage can take a couple of weeks… or it can take months. Knowing the budget and area beforehand makes all the difference.
Make An Offer On The Property
Found the right property? Move onto the negotiation phase.
A strong offer is more likely to be accepted. Make sure you’re pre-approved with your mortgage before typing that email.
Another tip is to be chain-free. Again, this increases the chances of your offer being accepted.
Once you and the seller agree on a price, the estate agent will mark the property as “Sold Subject To Contract”. But beware…
You’re not legally sold the property yet. Nothing is set in stone until contracts are exchanged.
Instruct A Solicitor And Begin Conveyancing
After accepting your offer, you’ll need to hire a solicitor. Conveyancing refers to the legal work required to transfer ownership of the property.
Some buyers instruct a solicitor before making an offer. Doing so can save you time later on.
This stage tends to be the longest, with local authority searches taking up to seven weeks.
Arrange A Property Survey & Valuation
The mortgage lender will send their own valuer to assess the property. But it might be worth paying for a property survey as well.
Most homebuyer reports take 2-3 weeks. It could uncover necessary repairs or even legal problems.
Exchange Contracts
Exchange of contracts means both parties are legally bound to the purchase.
A “subject to contract” is removed from the listing and completion is usually set within the next 1-2 weeks.
Both parties pay a deposit at this stage (usually around 10%).
Completion & Moving In To Your New Home
Completion means the remaining balance is paid and the keys are collected.
If all goes to plan, you’ll finally be calling this place home.
Easy right?
You’d be surprised how many buyers forget about one particular step…
Why You Need Income Protection Throughout The Home-Buying Process
Many buyers forget about what can happen after they move in.
Life has a funny way of throwing curveballs sometimes.
What happens if you become unable to work?
Your income pays the bills. Mortgage payments, utility bills, food… you name it.
In the UK, statutory sick pay is only £116.75 per week.
According to official figures from the FCA’s Financial Lives Survey, less than half of adults in the UK have protection insurance.
That means more than half have zero protection left should they become unable to work through illness or injury.
Income protection insurance helps cover living expenses if you’re unable to work. If you take out a policy it’ll pay out tax-free monthly payments. This covers anywhere between 50-70% of your salary.
Why is this important?
Well if you fail to make mortgage payments, the lender has every right to repossess your home.
For most people, their mortgage is the largest debt they’ll ever owe.
3-6 missed mortgage payments is all it takes to begin repossession.
The self-employed don’t even get statutory sick pay to help them out.
Getting income protection advice early on is vital.
When discussing mortgage advice, always ask about income protection too. The home may be protected but what about your ability to pay the mortgage?
You want a safety net should the worst happen.
How To Shorten The Home-Buying Timeline
Nobody wants the process to take months longer than necessary.
Statistics show that almost 30% of house sales fail to complete.
That’s nearly 1 in 3 failed house sales that have been agreed between estate agents and buyers.
Here are some tips to help things go smoothly…
Get your paperwork in order. Passports, ID, payslips and utility bills. Have them ready before you make an offer.
Communication is key. Ask questions and reply promptly to your solicitor and mortgage lender.
Stay chain free if you can. Property chains cause half of all late completions and a huge portion of failed sales too.
Book your property survey ASAP.
Wrapping Up
Everyone wants to know how long it takes to buy a house.
As you can see, there’s more to buying your own home than meets the eye.
Here’s what you need to remember…
- Get an Agreement In Principle before house hunting
- Have the right paperwork ready to speed up the process
- Make sure you can cover your mortgage repayment should you lose your income
Knowing how long it takes to buy a house is only half the battle. Preparing for the unknown is equally as important.
You’ve been warned!
