Buying a home - Who is Involved in the process and what are their roles?

Buying a home - Who is Involved in the process and what are their roles?

So your wanting to purchase a property, maybe its your first home, your forever home, maybe your buying as an investment. Whatever position you are in the process is pretty much the same…  you will encounter key individuals who all have important roles. Getting to know them and their duties will guide you through buying a home with confidence. Sometimes knowledge is key, when you know the process and you know whats happening you can rest easy that you’re in good hands.

So Who is Involved and What are Their Roles?

Estate agent

When you are looking to buy a home an estate agent plays a crucial role in helping you navigate the property market and facilitate the home buying process.

1. Property Search: Assisting you in finding properties that match your preferences and budget. They have access to a wide range of listings and can help you identify suitable options to view.

2. Property Viewings: Coordinating and accompanying you to property viewings. They provide insights into the property, neighborhood, and market conditions, helping you make informed decisions.

3. Negotiation: They handle negotiations on your behalf with the seller or their agent. They aim to secure the best possible price and terms for the property, leveraging their negotiation skills and market knowledge.

4. Offer Submission: Once you decide to make an offer on a property, the estate agent assists in preparing the offer and presenting it to the seller. They communicate with all parties involved to ensure a smooth and timely exchange of offers and counteroffers.

5. Sales Progression: After your offer is accepted, the estate agent plays a vital role in progressing the sale. They liaise with solicitors, surveyors, and other professionals involved in the transaction to ensure a seamless process leading to exchange and completion.

Simply put your estate agent acts as your guide, advisor, and advocate throughout the home buying process.

Mortgage broker or advisor

A mortgage broker or advisor plays a pivotal role in helping individuals secure the right mortgage for their home purchase.

1. Mortgage Options Analysis: A mortgage broker assesses your financial situation, including income, expenses, credit history, and deposit amount, to determine the mortgage options available to you. They analyze various mortgage products from different lenders to find the most suitable options.

2. Recommendation: Based on your financial profile and requirements, the mortgage broker recommends mortgage products that align with your needs. They explain the features, terms, and costs associated with each option to help you make an informed decision.

3. Application Assistance: The mortgage broker assists you in completing and submitting the mortgage application to the chosen lender. They ensure that the application is accurate, complete, and meets the lender's criteria to increase the chances of approval.

Mortgage lender 

A mortgage lender plays a crucial role in providing the financing needed to purchase the property.

1. Mortgage Approval: They start by assessing your financial eligibility and evaluate the property to determine the amount they are willing to lend you. They review factors such as income, credit history, employment stability, and the property's value to decide on the mortgage amount. This is where you need to do your homework and have all your incomings and outgoings to hand as proof of affordability. By getting a Decision in Principle before you start looking at homes you get an accurate idea of how much a lender might be willing to lend you. This will also prevent you from looking at properties outside of your budget and help you focus your search.

2. Interest Rates: Lenders set the interest rates for their mortgage products based on market conditions, risk factors, and the borrower's financial profile. They offer a variety of mortgage products with different interest rate options, such as fixed-rate, variable-rate, or tracker mortgages. They will provide you with the options available to you.

3. Mortgage Terms and Conditions: Mortgage lenders outline the terms and conditions of the loan, including the repayment schedule, loan duration, fees, and penalties. They provide clarity on the obligations and rights of both the borrower and the lender throughout the mortgage term.

4. Underwriting Process: Lenders conduct thorough underwriting processes to assess the borrower's ability to repay the mortgage. This involves verifying income, employment, assets, and liabilities to ensure that the borrower meets the lender's risk criteria.

5. Approval Process: Once the mortgage application is submitted, the lender reviews all documentation, conducts property valuations (if required), and assesses the borrower's creditworthiness. If the application meets the lender's criteria, they approve the mortgage and provide a formal offer to the borrower.

Solicitor/ Conveyancer

Solicitors or conveyancers play a crucial role in the legal aspects of the transaction. Here are the key responsibilities of solicitors and conveyancers in the property buying process:

1. Conducting Property Searches: They conduct thorough searches to check for any issues affecting the property, such as planning permissions, boundaries, utilities, or environmental concerns.

2. Reviewing Legal Documents: They review and explain legal documents, including the sale contract, title deeds, and lease agreements, ensuring the buyer understands their rights and obligations.

3. Exchanging Contracts: They facilitate the exchange of contracts between the buyer and seller, legally binding both parties to the transaction.

4. Handling Finances: They handle the transfer of funds between the buyer, seller, and mortgage lender to ensure a smooth payment process.

5. Registering the Property: They handle the registration of the property in the buyer's name with the Land Registry after the purchase is completed.

6. Resolving Legal Issues: They help resolve any legal issues that may arise during the transaction, such as boundary disputes or outstanding charges on the property.

7. Liaising with Other Parties: They communicate with the seller's solicitor, estate agents, mortgage lenders, and other relevant parties to coordinate the transaction effectively.

Make sure you inform the estate agent of your chosen solicitor’s name once your offer is accepted. When it comes to timeframes, solicitor searches usually take two to three weeks to complete, but additional inquiries may arise based on the results.

Once contracts are exchanged, you’re committed to purchasing the property.

Property Surveyor

Property surveyors in the UK play a crucial role in assessing the condition and value of properties.

1. Conducting Property Inspections: Surveyors visit the property to assess its physical condition ensuring that it meets the value that it is being sold for, identifying any issues such as structural damage, dampness, or defects. If the survey reveals that significant repairs are needed, you may negotiate a reduced offer to account for the cost.

2. Providing Valuation Reports: They provide accurate valuations of properties based on factors such as the property's size, location, condition, and current market trends.

3. Offering Expert Advice: Surveyors offer expert advice to buyers, sellers, and lenders on the property's condition, potential risks, and maintenance requirements.

4. Identifying Legal Issues: They identify any legal issues that may affect the property, such as boundaries, rights of way, or planning restrictions.

5. Survey Types: Surveyors offer different types of surveys, including Homebuyer Reports, Building Surveys, and Condition Reports, tailored to the specific needs of the client. They provide clients with comprehensive reports and recommendations to support informed decision-making on buying, selling, or maintaining a property.

6. Ensuring Compliance: Surveyors ensure that the property meets regulatory standards and planning regulations, advising on any necessary compliance measures.

A firm mortgage offer is usually provided by the lender after they approve the surveyor’s valuation. Make sure that any surveyor you consider is a member of the Royal Institution of Chartered Surveyors (RICS) and is accepted by your chosen lender.

We hope this gives you a better understanding of who is involved when you purchase a property and what their roles are, it can be a stressful time, but knowledge is key, and understanding whats happening can often make the process a lot easier to handle. As always E&M Property Solutions are happy to help if you have any queries or questions regarding buying property.