Step by step guide to buying a new build
No matter where you are on the property ladder, the process of buying a new home can seem daunting. If you are a first-time buyer you might be unfamiliar with the jargon and timescales of moving house, while those with a property to sell can face additional complications in dealing with potential buyers.
In contrast, the process of buying a new build is usually much more straightforward – you’re moving into a brand new property, with an experienced sales team to guide you through the process, and if you have a property to sell there may be an option to part exchange. To help you get started, we’ve put together a step by step guide on the process of buying a new build home.
The process of buying a new build
Use our step by step guide to go through the process of buying your new home:
Step 2: Put your old property on the market
Step 3: Get a mortgage in principle
Step 6: Get your mortgage offer
Step 8: Paying a deposit on your new build
Step 1: Find your new home
You’ve chosen the location, now it’s time to find your dream property. Whether you are searching for an extra room to turn into your dream dressing room, or a large living room to host your family – your home search can be exciting and rewarding, and buying a new build home means you will get a blank canvas that you can truly make your own.
If you’ve got your eye on a development, you can book an appointment to view it, or take a virtual tour at a time that suits you. You can use this opportunity to ask any questions about current offers or customisation options, and you can see the quality of the build first hand and decide whether this move is the right move for you.
As part of your research, check out the developer’s website, any reviews or case studies. It’s also a good idea to see if they are signed up to the New Homes Quality Code and check their customer satisfaction rating.
Step 2: Put your old property on the market
If you are moving from another property, you can engage an estate agent or do it yourself via one of the property selling apps. Properties are in demand in certain parts of the country, so you may find it gets snapped up quickly.
At Miller Homes, we could offer an Assisted Move Scheme to reduce the stress of moving. We conduct a free property valuation of your old property, help you set a sale price, and our experts can create a marketing plan to help sell it faster. We’ll also cover your estate agent and advertising fees.
Find out more about Assisted Move.
Step 3: Get a mortgage in principle
Your mortgage in principle (MiP) agreement from your bank will outline how much the lender is willing to offer you, so that you can get an idea of your budget before reserving your new home.
It’s important to know that a MiP is not a mortgage offer, but it can offer many benefits. You can position yourself as a credible buyer, save time by looking at properties that you know you can afford, and it can help speed up the time it takes to get your mortgage approved. Depending on your lender, the agreement will usually last between 60 to 90 days.
At Miller Homes, we can put you in touch with an independent mortgage advisor who can offer free guidance to help you find the best mortgage. You can also hire a mortgage broker who will help with your application. Before you receive a mortgage offer, your lender will carry out a survey of the property or the property plans. They may carry out an appraisal, inspect it and ask for a completion guarantee.
We also have an affordability tool on our website powered by one of our brokers.
Step 4: Find a conveyancer
Since a new build home has no previous owner, the buying process is quicker and smoother. A conveyancer will help manage the contracts for you and check over key details. It’s also worth checking with the house developer, as many work closely with solicitors so they can often recommend a trusted and experienced firm.
We have a list of solicitors on our website.
Step 5: Reserve your new home
Once you have found your perfect home, it’s time to reserve it. You can contact the sales team who will confirm the property price and ask you some questions. You will have to sign a reservation agreement and pay a fee, but this means your property will be taken off the market straight away.
You will then receive an invitation to attend a welcome meeting either in person, by mobile or video call. The sales team will explain your next steps and answer any questions you may have.
At Miller Homes, we offer online pre-reservations to make it as easy as possible for you. You could pre-reserve on our website from the comfort of your own home. Our pre-reservation fee is £150. Our reservation fee is normally £250 for properties up to £150,000 and £500 for properties between £150,001 to £499,999. For properties priced £500,000 and above, the fee is £1,000. After reserving your new home, you normally have around eight weeks to sign your contract and pay the deposit.
Luckily, when buying a new build home you have options. You can opt to buy it at foundation level to give you greater influence on the design, or you can choose to move into a home that’s already built. The earlier you reserve your home in the build process, the more opportunity you have to make it your own.
Step 6: Get your mortgage offer
After reserving your new home, you need to arrange your mortgage. You can use a free mortgage calculator to find out how much your repayments would be, and a stamp duty calculator to understand your costs.
If your mortgage will be funded by a bank, you will need to set up a meeting with them and send through documents including your ID and proof of income. They will check your credit score and assess your income and employment history.
Step 7: Exchange contracts
Once you have received your mortgage offer, you can exchange contracts and the ownership of the home will be transferred to you.
The contract will include details on the agreed property price and the completion date. Your solicitor will review it to check the fine print, including the title and ownership details, any planning and building regulations, and your warranty. Once you are ready, you can sign it. Then you exchange contracts with the developer, and the sale will become legally binding and final.
We will then offer you an options meeting where you come into our sales centre to discuss the finishes and any plans you may have. We would encourage you to use our options visualiser tool to help you bring your design to life. You can even use this before you reserve to plan your dream home before you buy it.
Step 8: Paying a deposit on your new build
After signing the contract, the next step is paying your deposit. You can do this directly or through your conveyancer.
We could offer to help with your deposit, where we could pay up to 5% of the purchase price of your new home. You will pay the reservation fee as normal, and then the value of the deposit paid payment will be taken out of the total sale price (once the contract has been exchanged).
Step 9: Check your new home
It gets even more exciting around a week before receiving your keys, you are invited to attend a home demonstration meeting to inspect your new home and see how everything works, and ensure it meets your expectations. You may also choose to hire a qualified inspector to attend also, or use a checklist provided by the New Homes Quality Code of things to look out for. If you have any concerns, you can raise these with the site team who will work hard to make the property perfect for you before you get the keys.
Step 10: Collect your keys
The next and arguably most exciting step is collecting your keys! The keys are normally handed over after construction has finished and means you can take physical ownership of your new home.
We set up a handover meeting where we look around the property together before handing over the keys. We want to make sure that you and your solicitor are happy and ready to go ahead.
Step 11: Final checks
Once you move into a new build, you’re not left without protection. New build developers offer check-ins to ensure your satisfaction, double check the quality of the fixtures, and check for any defects – known as snagging problems.
We offer regular check-ins after you move in to ensure that you’re happy with your new home, and we will ask you to fill in a customer survey. The following check-ins are our standard:
- One week check-in
- One month check-in
- One year anniversary check-in
- Two year anniversary check-in
Our customer service team will support you throughout your move and while you settle in. We want to make sure you are satisfied with your new home and we are committed to providing you with exceptional service.
To find out more about all our current developments, click here.