We understand that buying a newly built home can sometimes seem complicated and a difficult process to navigate. Below, we have provided an easy to understand step by step guide to help better understand the process.
Most mortgage lenders will require a minimum financial contribution of at least 5% of the price of the property you want to buy. This is your deposit. The more deposit you have, the less you’ll need to borrow.
The next step in the home buying process is to know how much you can borrow. An independent mortgage broker (or your Bank) will be able to carry out a mortgage affordability check, provide you with an estimate of how much you can afford to borrow and help you obtain a Mortgage in Principle. Most lenders will lend up to 4.5 times your gross salary or if there is more than one buyer, your combined gross salaries.
With a Help to Buy: Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. Help to Buy equity loans are available to first time buyers as well as existing homeowners looking to move. The home you want to buy must be newly built with a price tag of no more than £600,000. Your mortgage broker will be able to carry out a Help to Buy eligibility check during the mortgage affordability check.
Now you have an idea of how much you can borrow, it’s time to start looking for your new Belford home.
Once you’ve found your perfect Belford home and your finances are sorted, you can secure the property by completing a Reservation Form and paying a £100 reservation fee. This reserve’s the home for 8-weeks. At this stage we will provide you with both a ‘shortstop date’ – the date by which we expect to have completed your new home ready for occupation and a ‘longstop date’ – the date by which we must have completed your new home ready for occupation.
With the property reservation completed, we now have 8-weeks for contracts to be exchanged. Each development has an independent appointed solicitor to represent you and undertake the legal conveyancing process on your behalf. Your solicitor will work within the 8-week period and carry out all necessary searches, raise enquiries, check the legal Title and report back to you. They will handle all enquiries with Belford Homes solicitors, liaise with your lender regarding your mortgage and deal with the Help to Buy process. There is no cost to you for this work as it is part of our Key in the Door price promise.
During the conveyancing process your lender will instruct a (RICS) valuer to carry out a valuation of the property to make sure that it is a fair market value for the property.
Your solicitor and our solicitor will formally exchange contracts and the contract becomes legally binding. Your solicitor may require a deposit which is a percentage of the house price and they hold the monies on account until completion.
Your solicitor will draw down your mortgage funds and along with the deposit paid at exchange, transfer the funds to our solicitor and complete the purchase. You can now collect the keys to your new Belford Home.