Whether you’re a first-time buyer, or you’re thinking about moving up the housing ladder, you might be asking yourself “How do I buy a house?” The process of buying a home can feel daunting. There’s a lot to get right and plenty that can go wrong. Our home-buying guide breaks down the steps to buying a house into digestible chunks. 

For those of you wondering: “What is the process of buying a home?” Read on to discover the critical steps to buying your first home, your second home, or your forever home. Grab a cuppa and let’s get into it.

The house purchase process: Timeline

Before we get started, let's answer the question: “How long does it take to buy a house?” This home buying process checklist gives you an idea of the main steps and how long they take:

• Getting a mortgage in principle: With a deposit already in hand, you may be able to get  a mortgage in principle sorted within a day.
• House hunting and getting your offer accepted: This can take anywhere between weeks and months depending on your search and the market you’re buying in. This is often a long part of the home buying process, and sometimes a frustrating one. But it can also be fun.
• Exchanging contracts: Often this will take between one to three months.
• Completion: Expect your contracts to be exchanged approximately a fortnight before your completion date. 
• Paying stamp duty and fees: You should be able to get your stamp duty, fees and other obligations sorted in another couple of weeks.

So, how long is the home buying process from start to finish?

All-in-all, the home buying process steps will take a minimum of two to three months. But you should accommodate for the fact that finding your perfect home and having an offer accepted can take much longer in competitive housing markets.

What is the first step in buying a home?

One of the first steps to buying a house is deciding whether it is actually right for you. Are you ready to take on the responsibility? Have you considered the benefits of renting vs. buying a home? Can you afford to buy a house? These are all big considerations that are important to consider before you start the house purchase process.

Okay, so you’ve decided you’re going to take the plunge into the housing market. What are the first steps to buying a house? A good place to start is by working out how you’re going to pay for your new home. Do you have a deposit ready to go? Or, if you’re not a first-time buyer, is your current home on the market yet?

Early steps to buy a house: Get a deposit

Another early step to buying a home is sorting out your deposit. This is the money that you put down against the value of the house you want to buy. It will often dictate the value of the house you can afford. Ideally, you will have as much money as possible to put into your deposit so you need to borrow less.

The average deposit on a house is between 5% to 15% of its value. If you don’t yet have a deposit, perhaps go fantasy house hunting to get a feel for the prices in areas where you’d like to live. Set a target and get saving. 

Head to Loqbox Learn for handy tips on how to set a savings goal.

Choose your mortgage

When thinking about how to buy a house, most of us need a mortgage. Unless you have the full cost of the property you want sitting in your bank, you are going to need to borrow some money. Mortgages are large loans that you can apply for when you want to buy a house, also known as house purchase loans. 

When you apply for a mortgage, your credit report will be subject to a hard credit check. This is done by the potential lender to establish whether they consider you a risk to loan money to. Higher credit scores are more likely to be accepted for mortgages, and will often get you better interest rates. 

When it comes to paying a large loan like a mortgage, better deals, with better interest rates, can save you £10,000s in the long run. So why not kill two birds with one stone and boost your credit score while you save for your deposit with Loqbox? 

Improvements to your credit score are not guaranteed. 

It can be sensible to chat with a mortgage broker before you start searching for your perfect home. A mortgage broker is a person or company who arranges the agreement between you and the lender. They can help you understand what deals are available, and how likely it is that you’ll be accepted. By chatting to one, you can establish what your monthly payments are going to be and what house value you are realistically going to be able to afford. 

Once you have found your target house price, you’ve researched the housing market and you’ve found a good mortgage provider, it’s a good idea to apply for a mortgage in principle. This is a document from the mortgage provider that agrees (in principle) to lend you the amount you need, which can let sellers know that you mean business.

Find a conveyancer

The procedure for buying a house is made easier by getting in touch with a licensed conveyancer (normally a solicitor). This person will handle all the legal aspects of your house purchase. Make sure to find a conveyancer who is accepted by your chosen mortgage provider. 

Find a home

House hunting is probably the most exciting bit of the process of buying a house. Looking for, and finding, your perfect home can be a real thrill, but try not to set your heart on one particular property. Prepare yourself for the possibility that your offer might not be accepted, or somebody else might get ahead of you. The right home will be out there — you just need to find it. 

Location, location, location

This famous estate agents’ phrase is a cliché for a reason. Where a house is has a huge impact on its value. The desirability of the area, access to transport connections, and quality of schools. All of these things will drive a price up (or down). Consider what’s most important to you and whether you can afford it or if you need to make sacrifices.

Make an offer

When you find your ideal home, putting in the right offer (at the right price) is a really important part of being successful. Of course you want to pay as little as possible, but you also need to beat stiff competition to secure the property. It may not all come down to price, sometimes being able to move quickly (as a first-time buyer) can seal the deal.

Getting your offer accepted

Getting your offer accepted is great. But it isn’t time to open the bubbly just yet. Remember, buying a house is a marathon, not a sprint. Even with your offer accepted, you can still be outbid at this stage. To avoid this, it’s best to get the sale through as quickly as you possibly can. 

Work out your stamp duty

With an accepted offer, it’s a good idea to work out how much stamp duty land tax (SDLT)  you will be required to pay on your new house. You will often need to pay this within two weeks of completing the purchase so be sure to have it ready. First-time buyers buying properties under £500,000 may not have to pay any stamp duty.

Get your mortgage

Whether you go directly to a mortgage provider, or indirectly via a mortgage broker, when your offer is accepted it’s time to get your formal mortgage in place. This will require a hard credit check so make sure your credit score is looking good before you get to this point. Improving your credit score can take time so do it as early as you can.

If you don’t know your credit score, you can check it for free, and without impacting it, using these recommended sites. These give you coverage across all three of the UK’s major credit reference agencies (CRAs): Experian, Equifax and TransUnion.

• ClearScore (uses Equifax data)*
• Experian App (uses Experian data)
• Intuit Credit Karma (uses TransUnion data)

*Transparency is important to us, we choose our partners very carefully, and only present financial products we think will work for you. If you decide to sign up to ClearScore using this link, we’ll receive a small commission.

How long is the home buying process: Mortgage applications

Once you have made your mortgage application to your preferred provider, it will normally take at least three weeks to process. If you’ve already got your mortgage in principle sorted, this can sometimes speed up the process. It will also help to have ironed out any issues with your credit report before you get to this stage to avoid delays.

Get a lender’s valuation (valuation survey)

When you make your mortgage application, your provider will typically conduct an inspection of your property in order to establish that it is real and worth approximately what you are considering paying for it. This survey, unlike the survey you should do for yourself, is a straightforward search that doesn’t usually identify any issues with the property.

Organise your own survey

It’s advisable to organise a surveyor to come and check out the property you are looking to buy. This is especially true if it isn’t a new-build, but it’s wise either way. A survey is conducted by an independent expert who can give you their opinion on whether the property is a decent investment.

You can choose varying levels of surveys, which go up in detail (and price). But don’t be tempted to  cut corners when it comes to surveys. However much you pay for it, it will be nothing compared to the cost of heavy structural work on a problematic house. Also, if you unearth any issues you may be able to renegotiate the asking price of the house.

Sort out your completion date

Once you have your offer and your mortgage application accepted, and you’ve successfully renegotiated the house price (if required), you will need to pinpoint your completion date. This is the day when ownership of the property changes into your hands (and may also be your move-in day, too). This is what’s often called “The Big Day”!

If you’re a first-time buyer, and you aren’t in a chain, this can be a lot easier than when you are both the buyer of your new house and the seller of your previous one. In that case, you may find that every buyer and seller in the same chain will need to complete on the same day. That’s why not being attached to a chain can make you a more desirable buyer! 

Exchange contracts and transfer funds

About a week or two before your completion date, you will sign and exchange contracts with the people you are buying your house from. This will trigger payment of your deposit via your solicitor. This is known as a point of no return, as at this stage neither buyer nor seller can back out without heavy consequences (you could lose your deposit). 

Complete the purchase

Just before your completion date arrives your mortgage provider will release the money via your solicitor. It is then sent to the seller’s solicitors. Coming back the other way, towards you, is proof of payment and the title deeds to the property. That means the property is now legally yours. Now it's time to open up the bubbly! Well, almost… 

Pay your stamp duty and fees

You usually need to pay your stamp duty within 14 days of your completion date, and register ownership of your house. Your solicitor will generally take care of all of this but there are fees attached. 

Move in!

At last, now you have the keys. Congratulations, you're now the proud owner of a brand-new home!