Buying a new house is a huge investment, and unfortunately, one that can come with many challenges. The conveyancing process can be long and complicated, so you must understand the process that you have to endure and the potential problems that can arise. This will help you prepare as much as possible, so you can minimize risks and face anything that can come your way with speed and ease.
Whether you are a first-time buyer or have a portfolio of properties, problems can arise. They are also much more likely when you have many parties in the chain.
To help you with buying your next property, here are some of the most common problems that arise and how to deal with them.
#1 Delays when securing financing
Getting a mortgage is not very straightforward. Not only do you need to have an excellent credit score, but financial lenders also have strict criteria that you must meet to be accepted for a mortgage. You will likely have to go through a range of questions and consultations, supply lots of information and documents, and wait a long time to find out whether you have been successful or not. Many people find that you have to go back and forth with lenders, and even shop around when trying to be accepted for a mortgage.
To avoid delays, you should start the mortgage application process as far in advance as possible. This will ensure you don’t hold up anything when you find the perfect property. You should also be as organized as possible, work on improving your credit score and gather all the relevant documents that you might need for the application process.
#2 Problems with the survey
A survey is an important part of the house-buying process. When you secure financing, your mortgage lender will require a survey to be conducted on the property so they can ensure that the property value is correct and there are no major issues, before they lend you the money. This is important as there is a lot of money involved. Surveys can also benefit you as they will tell you if there are any issues with the property that may become costly or problematic later down the line. Unfortunately, if any problems arise in the survey, you may find that your lender will delay the process, not offer you a mortgage, or offer less than you need for your ideal property.
#3 Rushing the process
Many people get excited at the prospect of buying a new house, and instead of taking their time to find the perfect property, they rush through the process. Unfortunately, this can result in buying a house that has many problems or does not have everything that you need. Many people will start to compromise on what they are looking for because buying a house is exciting. This can lead to many problems down the line, as many important parts of the house hunting process were ignored.
To avoid this, make sure you don’t rush the house-buying process. Take your time, view a variety of properties so that you have something to compare them to, and visit a property more than once.
#4 People in the chain backing out
Unfortunately, it is not uncommon for people in the chain to back out at the last minute. This can be extremely frustrating, especially if you find a property that you like. While you can’t change what the other parties choose to do, you can make sure that everything on your end of the chain is ready to go and not holding anything up. Communication is key when it comes to working with a long chain. If there is a lack of organization or communication anywhere in the chain, it has the potential to break down quickly. If you are going away or going to be uncontactable, or have any problems or disputes, make sure everything is communicated effectively. You should also make sure you keep an eye out for different properties in case the seller does pull out before exchanging contracts.
#5 Conveyancing issues
Your solicitor will play a huge role in your house-buying process. From conducting searches to drawing up contracts, they will be dictating the pace of the process. If you have not hired a solicitor before you start the process, you may find a delay right from the start. This is because there are a lot of initial setups and checks that need to be done. If your solicitor lacks good qualities, for example, they are not very organized, poor at communication, or don’t have much experience, then you may find that you come up against lots of issues and delays.
To avoid this, you should do your research and enlist the support of a solicitor that you can trust, such as Wall Legal Solutions. Make sure you hire them as early on in the process as possible, supply them with as much information as you can, stay in contact with them and ensure they possess good qualities. For example, they have good communication, they have a good reputation, and they have relevant experience.
#6 Gazumping
Gazumping is an unfortunate process where the seller changes their mind and accepts an offer for their property that is higher than yours. While this is unfair, it is not illegal, and it might even happen after you have hired a solicitor and paid for searches. Until the contracts are exchanged, anything can happen.
To help you with gazumping, you must put a fair offer on the property, stay organized in the process to reduce delays, and continue to move at a good pace. You should also request that the property be taken off the market once they have accepted your offer, to help you reduce the chances of gazumping happening.
Buying a property is a long and complicated process. Familiarizing yourself with common problems will help you prepare better in advance and reduce the risk of running into any problems.
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