Continuing with my three part series on buying property in London, here are the next five crucial steps
#6 Get a Mortgage in Principle
If you’ve determined that you will need a mortgage, it’s important to get a Mortgage in Principle (MIP). This will be helpful when you go out looking as it demonstrates that you know what you can afford. Many estate agents will ask you for your MIP as a way to gauge how serious you are as a buyer. For further reading and up-to-date information on MIP click here You may also want to be able to demonstrate proof of funds for the equity portion when you are submitting an offer, or when an offer is being considered.
#7 Decide Where You Want to Live
So now that you know what kind of property you want and have a good sense of your budget, you then need to consider where you want to live. London is a diverse and dynamic city with many different areas each having their own distinct character. You’ll also need to consider the location in terms of affordability, commuting time and expense.
#8 Choose a Specific Property
Most buyers use the online portals to start their property search and will also register with multiple agents. This can be quite overwhelming and you may well be bombarded with endless emails detailing properties that don’t really fit your criteria. This tends to happen because agents work for sellers and need to get their stock sold.
~Novel Serialisation: Heavens Fire~
To avoid this scenario it might be preferable to work with someone who is truly on your side and will guide you through the entire buying process. In which case, it is worth considering engaging the services of a Buying Agent/Property Finder. They can help you consider details that go beyond location and will also advise and compare the properties you actually view.
#9 Make an Offer and Get it Accepted
When you find the right property and make an offer, there may be other negotiations to work out before the offer is agreed. Remember that beyond price, there are other things to consider such as any repair works, items to be included with the property, and fixing a completion date. A buying agent representing you will be able to negotiate on your behalf. Alternatively, you will have to negotiate directly with the estate agent working on behalf of the seller.
#10 Arrange a Mortgage
Once your offer is accepted, the estate agent will want you to provide details of your solicitor and start working on getting your mortgage approved. Now that you have identified the property you would like to purchase, you can present the property details to the lender who provided the MIP and begin the process of obtaining the mortgage. Depending on how much time has lapsed since the MIP was issued, you may want to check again with other lenders to make sure you’re getting the best rates currently available.
Ugo Arinzeh is the founder and Managing Director of Onyx Property Consultants. She has an MBA in finance and spent over 10 years with Bank of America Merrill Lynch structuring and negotiating real estate transactions. Over the years she has personally bought, sold and managed properties both in the US and London. Ugo is passionate about property and founded Onyx to utilise all her skills from her corporate and investor background to deliver exceptional results for her clients. As part of Keller Williams, Onyx is connected to the largest network of agents globally.
