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) can 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 salary.
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 in order, you can secure the property by completing a Reservation Form and paying a £100 reservation fee, reserving the home for 12 weeks. At this stage, we will provide you with 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 12 weeks to exchange contracts. Each development has an independently appointed solicitor to represent you and undertake the legal conveyancing process on your behalf. Your solicitor will work within the 12-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 and liaise with your lender regarding your mortgage. 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 conduct a valuation of the property to ensure that it is a fair market value for the property.
Your solicitor and our solicitor will formally exchange contracts, which will become legally binding. Your solicitor may require a deposit, which is a percentage of the house price. They hold the money on account until completion.
Once you've exchanged contracts, it's time to select your finishing touches. From kitchen cabinets and worktops to bathroom tiles and accessories, it's your opportunity to create your unique Belford home.
Your solicitor will draw down your mortgage funds and arrange to transfer them to our solicitor along with the deposit paid on exchange, completing the purchase.
You can now collect the keys to your new Belford Home. A member of our friendly team will meet you at your new home to carry out a coordinated hand-over and provide you with your Home Owner's Pack to help you settle in. It provides all the information you need to live comfortably in your new Belford home.
