The buying process step by step

Buying a home is, for most people, the biggest deal of their lives. And the process has more steps than many think. Here we go through the whole chain, from first bank contact to standing with the keys in hand.

1. Get pre-approved

Before searching seriously you need a mortgage pre-approval (lånelöfte) from a bank. The pre-approval states how much you may borrow and is usually valid three to six months. Without it you cannot bid seriously.

Compare several banks if you can. Both rate and amount can differ markedly. Note the pre-approval builds on your current finances; changing jobs or taking new credit can affect it.

2. Find the right home

The classic route is watching listings and running to viewings. The reverse, you as a buyer describing what you seek and letting sellers find you, grows ever more common. On SökHem you place a watch with your requirements, and get matched automatically against fitting homes, even ones never reaching the open market.

Know the city but not the district? The area guides rank neighbourhoods on school results, safety and finances. See for example the best areas in Stockholm or in Gothenburg.

3. Viewing and duty to inspect

As a buyer you have a duty to inspect (undersökningsplikt), especially buying houses. What you should have found in a careful inspection, you cannot claim compensation for afterwards. Hire a surveyor when buying a house or terraced house, and read the association’s annual report carefully when buying a tenant-owner apartment.

4. Bidding and contract

Bidding in Sweden binds neither side legally until the contract is signed. The seller may pick any bid, and you may pull out until signing. Also read our short answer to whether you can pull out of bidding.

At signing, a deposit (handpenning) of usually ten percent is paid. Make sure the contract holds any conditions, for example that your loan is granted or that the survey shows no serious defects.

5. Moving day

On moving day you usually meet at the bank. The remaining purchase price is paid, title registration (lagfart) or association membership is arranged, and keys change hands. Congratulations, the home is yours!