Step 1: Making Sure You’re Ready

Don’t just leap into the buying process — take a step back first and assess your situation. Being aware of where you are now, what you want to achieve and how you are going to achieve it can be the difference between success and failure. If you plan ahead, you can anticipate problems before they arise, be prepared for questions before they’re asked and have the best chance of getting through the whole process as quickly as possible. Planning and preparation mean you’re more likely to avoid, or at least shorten, the delays that are an almost inevitable feature of house buying.

Knowledge is Key

Before you even start the buying process, you should be clear in your mind about what you're after. You may be a first time buyer taking that initial step on the property ladder or you may be an existing owner looking to trade up, trade down or just relocate.
Ideally, you should set clear goals in terms of the type, location and price of property you want to buy. Understand why you’re moving and the timescales that are involved — it may be a necessary move that has to be completed by a specified date or simply a wish to move that has no deadline. This can dictate how you proceed.
The property market is full of temptations and it’s easy to get distracted along the way — in fact, it’s almost certain that you will be distracted away from your initial goals. However, if you stay focused and try to resist the temptations, you’re more likely to hit your target.
The more you know about what you want to achieve and of the current state of the real estate market, the more likely you are to reach your objectives. You’ll be able to ask the right questions, evaluate the answers and make informed decisions.

Assuring Your Credit Rating

Unless you’ve got lots of cash or are planning to move to a smaller property, you’re likely to need a home loan to finance the deal. The very best loans, with low deposits and good rates of interest, go only to those with a good credit rating.
It’s in your interest to make sure your credit rating is the best it can be before you even apply for a loan. That means, in at least the twelve months leading up to the house purchase, making sure you pay everything fully and on time — loan repayments, credit card bills, everything. Never miss a payment, otherwise your rating could be damaged and your loan prospects are reduced.

Getting the Cash

For most people who are buying a home, finance is essential. You’re usually expected to put down a deposit on the property and the balance of the purchase price is financed by a home loan that is paid off at an agreed rate over a set number of years.
How much you put down as a deposit is likely to depend on the amount of money you have available, which in turn may be governed by the sale proceeds from an existing property. Obviously, a larger deposit means a smaller loan, which results in lower repayments and a reduced overall purchase cost.
The amount of deposit needed may not be in your control. It may be set by the terms of the loan, although there are loans available that require relatively small deposit amounts. The amount you’re required to put down may depend on your credit rating, which emphasises the need to ensure it’s in good order.
Home loans may also have associated final costs to close the loan. These cover various settlement expenses and in some cases can be underwritten by the loan. In a buyers’ market, you may even be able to persuade the home owner to pay some of the closing costs as part of the deal.