Once you have decided to buy, the home-buying process involves:
- shopping around for a mortgage lender
- working out how much you can afford to spend
- looking at properties within your price range
- once you have found a property you want, appointing a solicitor
- formally applying for your mortgage
- receiving an 'offer of advance'
- making an offer
- having the offer accepted (at which point a contract is passed between you and the person selling the property)
- finalising the legal arrangements for you to become the owner
- moving in.
How do I get a Mortgage?
It is important to shop around when deciding from whom to get a mortgage. To do this, it is necessary to consult with different lenders, e.g. banks, building societies and mortgage brokers to find out the amount they will lend and offers available. Although lenders differ in the amount they will lend, in general they will offer 3 x a buyer’s salary or 2.5 times their joint income. You will normally require a deposit.
If mortgage payments on a home are not kept up to date and the mortgage falls into arrears there is a danger of losing the home. The home may be repossessed by the mortgage company.
It can be expensive to carry out necessary repair and improvement work to property. It is a good idea to find out about all repair and maintenance work the property needs before buying.
Home Reports
Most Houses / Flats for sale (except some such as new and RTB properties) now have to be marketed with a Home Report which is given to prospective buyers of the home. This is a pack of three documents: a Single Survey, an Energy Report and a Property Questionnaire.
The Single Survey contains an assessment by a surveyor of the condition of the home, a valuation and an accessibility audit for people with particular needs. The Energy Report contains an assessment by a surveyor of the energy efficiency of the home and its environmental impact. It also recommends ways to improve its energy efficiency. The Property Questionnaire is completed by the seller of the home. It contains additional information about the home, such as Council Tax banding and factoring costs that will be useful to buyers.
The Scottish Government’s website has detailed information and advice on Home Reports:
www.scotland.gov.uk/Topics/Built-Environment/Housing/BuyingSelling/Home-Report
Valuation and Mortgagability
All Single Surveys must have a valuation. Some may contain a mortgagability statement which will help will help buyers to establish the availability of a mortgage before they make an offer to buy a house.
How will I know how much to offer?
Most sellers ask for offers over a certain amount. Your solicitor will advise you on how much to offer. Whether an offer is accepted will depend on what other offer, if any, the seller has had. If the offer is accepted, the buyer and seller will go ahead with the deal.
| Return to Table of Contents
| Return to "Do you want to find out about buying or building a house?