A guide to buying your new home

Posted on April 3rd 2025

Buying a home is often one of the biggest decisions you will make. With so much information out there, you may not know where to start, so to make the process a little easier for you, we’ve put together this handy guide and checklist.

 

Who’s who?

There are lots of specialists who can offer advice or assistance during your home buying process.  Here’s a breakdown of who’s who and what they can provide you with:

 

Lender

They lend you the money to buy the property.

 

Insurer

The insurer can provide you with the buildings insurance needed to buy and protect your new home.  They usually can also provide contents cover to protect your possessions.

 

Legal Representative/Conveyancer

A legal representative does all the legal work needed to buy a house – things like drawing up a draft contract or terms of engagement.

 

Surveyor

Surveyors assess the physical condition of the property and can give an independent valuation. When you buy a brand new home, they’re often not required though.

 

Mortgage Broker or Adviser

A mortgage broker will advise you on which mortgage is most suitable for you and help you complete the process.  Once you have decided on your new home, you’ll need to go back to your mortgage adviser and get your mortgage arranged for the agreed price. This means completing the full mortgage offer with your lender.

 

 

A Step-by-Step Guide

 

What can you afford?

It’s important to know how much you can afford when it comes to choosing a new home. A mortgage lender can help you to find out what would be best for you. They will look at a few things that will influence how much you can borrow, such as your:

• Credit score
• Income
• Employment status
• Deposit amount

The government also have a range of schemes available, which might be useful when purchasing your first home.

 

Your mortgage

Once you know how much you can afford, your mortgage adviser will get to work. They will review deals from different lenders to find one that is best for you. Once you have come to an agreement with them, they will go to the lender for you to get a mortgage agreement in principle. The lender will then run a credit check. Here are some things to bear in mind when it comes to mortgages, as it’s good to be prepared in advance…

• Don’t apply for further credit as this will affect the maximum mortgage available to you.
• Register on the Electoral Register – lenders like to know where you’ve been! A lack of address history can be an indication of “hidden” addresses where adverse credit is registered.
• Pay Day loans indicate financial instability. Their very presence on your credit file could cause your mortgage application to be declined.
• Avoid using comparison websites for insurance quotations as they result in multiple credit searches, which may reduce your credit score.
• Cancel available lines of credit you don’t need, e.g. credit cards with nil balances – lenders may take your “open” credit facilities into account when considering maximum lending.
• Obtain a “FREE 30-Day Trial” of ‘check my file’ by visiting www.checkmyfile.com
• Keep your latest 3 months’ bank statements & payslips – they will be needed by your lender to verify your income, outgoings, address and rental history.
• No active credit means that you cannot evidence your attitude to debt – i.e. that you pay on time and in full. Improve your rating by using a credit card to pay for small items (e.g. petrol/groceries) and pay off the balance at the end of each month. If you don’t have a credit card then apply for one – your own bank is most likely to approve you as you already have a history with them!
• Remove any financial associations with those who have poor credit – i.e. don’t share bank accounts or credit cards.
• Do not enter into any new financial associations (bank accounts /credit cards) with anyone who has a poor credit history.
• Pay all of your financial commitments in full and on time.
• Make sure your passport has not expired and that your driving licence is registered to your current address.
• Ensure that your bank statements are registered to your current address.
• Does the name on your passport / drivers licence match your payslips / bank statements etc? If not, take remedial action and get them amended.
• If you are self-employed, ensure that you have your latest years SA302 & Tax.
• Overviews from HMRC (your Accountant will be able to assist you with this).

 

Choosing a home

Now for the really exciting bit, choosing a new home. Factors to consider when choosing a home include:

• The location
• The home design, size and layout
• The specification included in the home
• The schemes and incentives on offer to you
• The local transport links
• Schools in the area, if appropriate
• Commuting times

It’s a good idea to take a trip around the area to get a feel for the place.  It’s nice to know what’s close by and if it feels right for you.

 

Reserve your perfect home

Once you’ve decided on your dream home then it’s time to reserve. Your Sales Advisor will explain the whole process to you.

 

Find a solicitor

Now it’s time for the legal side of things. Finding the right solicitor to deal with all that is needed when buying a house is really important. Orion Homes can recommend some excellent solicitors who we work with regularly – ones who really understand the process of buying a new home so will make everything quick and easy for you.

 

Apply for your mortgage

Once your reservation has been accepted, you’ll need to go back to your Mortgage Adviser to get this arranged.  This means completing the full mortgage application with your chosen lender.

 

Exchange contracts

Exchange is when you exchange your signed agreements which legally bind you to commit to the sale. You’ll then pay the deposit via your solicitor.  If you change your mind after this stage, you could lose your deposit.  If the property you’re buying is ready to move into then you will be able to agree a date to move in straight away, but if your house is still being built then you will be given an estimated date for when your house will be completed. It is only completed once it has been checked by the New Homes Warranty Providor, and once they have provided a certificate confirming the house is complete you will then be given a set date for when you can move in.

 

Insurance

One of the conditions you’ll normally find in a mortgage contract is insurance.  They often state that you need to have buildings insurance on your property as it protects your new home should anything happen to it.

Contents insurance will protect all of your stuff once it’s in the house, and although rarely stipulated as a requirement, it is a good idea to have it.

 

Completion and moving in

When we are ready to complete, your solicitor will transfer the remaining funds, and once the money has gone, you’ll be able to pick up your keys and start an exciting new chapter in your life. Congratulations! You’re a new home owner.

 

 

Glossary of Terms

Building insurance

You’ll take out this cover to make sure that if your property is damaged by fire or the elements, you can have your home rebuilt.  This cover is a must, and a lot of lenders might ask you for this information as they are giving you the mortgage.  Once you exchange contracts, you should have this insurance in place, as you will be liable for the building.

 

Contents insurance

You’d need this cover to protect all of your possessions against accidental damage or theft.

 

Buy-to-let

If you’re planning to buy a property to rent out, then you’ll need a buy-to-let mortgage and specialist landlord insurance.  You’ll need building cover as standard and contents cover, if your property is furnished.

 

Completion date

The completion date is when you finally own your new home and you can move in!

 

Deposit

The sum of money initially put down by a buyer when purchasing a property. Please make sure that if you have a Help to Buy Isa or a sum of money that needs to be requested from another bank account, or if someone is helping you with your deposit that you make your Mortgage Advisor aware this needs to be done, they can then advise you as to what will need to be done prior to any Deposit being requested.

 

Energy Performance Certificate (EPC)

An EPC provides an energy performance rating for your home. They can range from an A rating, which is the most efficient, to a G rating, the least efficient. One of the many good things about buying a brand new home is that your rating will be very high!

 

Exchange of contracts

Once you exchange contracts, you are legally bound to complete the deal.  Changing your mind at this point could end with you having financial repercussions.

 

IFA

Independent Financial Adviser. They will help set up a Mortgage for you, make sure you tell them exactly where any deposits, are coming from i.e any ISA Accounts, gifted deposits etc so they can factor in when these need to be requested. Most importantly make sure you tell them about any credit problems, any credit cards, loans etc. They’re not being nosey they need to have all of this to make sure they get you a Mortgage that is suited to you and most importantly at the best rate for you.

Mortgage offer

This is a formal written offer from your bank or building society that shows their intention to lend you the approved amount against a property.

 

Stamp duty

This is the amount of tax paid to the government when you buy a house. The amount can change depending on how much the house is worth. You pay this when you complete the buying process.

 

Council tax

Council tax refers to the amount you have to pay to your local council. It covers local amenities such as police, fire service and general repairs to highways etc. Each home has a specific council tax band which will determine the amount you are to pay.

 

 

A useful checklist

 

Here are some useful things to remember when moving into your new home…

 

Buildings and Contents insurance

Buildings insurance is a requirement when buying a home and covers you for property damage.  Contents insurance covers all your possessions within your home.

 

Meter Readings

It’s important to take Gas and Electricity meter readings as soon as you move into your property as your providers will need this information.

 

Council Tax

To pay council tax on your property you will need to get into contact with your local council.  They’ll register you and send you a Council Tax bill and also tell you how and when to pay.

 

Utility Bills

Utility bills cover areas such as water, electric, gas and sewerage.  You should keep a note of the day you move in and let all your suppliers know.

 

Internet

You should let your internet provider know you will be moving out a few weeks prior to the final exchange of contracts.  This way you can have your line rerouted the day you move to prevent any delay.

 

Phone

Your landline is often linked to your internet provider.  If it is, they will move it when they switch your internet connection over.  If it’s with another provider, you will need to let them know in advance.

 

TV Licence

You should change the address on your TV licence so that you do not get charged again when you move home.

 

TV Package

If you have a TV package with a provider such as Sky or Virgin, make sure you inform them in advance to moving to your new home.

 

Checking out the local area

Have a look around the area so you can see where all the local amenities are found.  If you have children or are planning children, it’s also worth checking out the ratings of local schools.

 

Registering with doctors and dentists

It’s worth registering with the local doctors and dentists as soon as you move in.