How does the homebuying process work financially?

Q I would like to sell my property and buy a smaller one in the same area. Houses on the roads I would like to live on don’t come up for sale very often, so I am tempted to wait until the right one becomes available before I put my current home on the market. I have sufficient funds for the deposit but not enough to buy a house outright until I sell my property which is mortgage free. I am 65 years of age and unaware of possible loans available to me. CM

A You are unlikely to need a loan. What usually happens is that when you find somewhere to buy, you wait until you have a buyer for your current home before exchanging contracts. This is the point in the process where you pay a deposit, which is usually 10% of the purchase price, and you fix the date when the purchase will be completed. Provided the seller of your new home, your buyer and you all agree the same completion date, on that day the money your buyer pays you will be used to pay for your new house. © 2013 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds

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