Let’s assume you are pre-approved for finance and you are ready to start your journey to buy your dream home or maybe an investment property, this article can be used for both.
See below what you need to know?
- Get approved for your home loan. See recent blog here on how to prepare for a loan in 2020: https://prosperfinance.com.au/2020/08/25/applying-for-a-home-loan-in-2020-here-is-what-you-need-to-know/
- Consider your options: narrow down some suburbs, know your maximum price and make a plan for the next Saturday of open homes so you see what you can afford and in an area that’s suitable for your life
- Set a budget, some personal advice from someone who has both missed out and secured a few properties is: Be Flexible there is no place for stubbornness when buying a property. I can’t tell you how many of my clients have missed out on great properties over $10k. If you like something and can afford it, go for it!
- Now you are ready to start shopping! When you find a property to want to buy, the next step is to request a contract from the real estate agent
Send this contract to your solicitor/conveyancer, they will check for any issues or things you need to take into consideration for example: Sewer lines, boundaries and use of common or shared property. Basically they will give you the go ahead to make your first offer!
- Send your offer. This offer will be submitted in writing by email to the agent it will look something like the below:
I would like to make a formal offer on 37 Lowanna Ave Forrester’s Beach of $1,050,000. Please note, I would also like to request from the vendor a 10 day cool off period as discussed over the phone”
- After your offer is negotiated and you agree on a price, you and the vendor will both sign a copy of the contract. Your conveyancer again will give you the go ahead for this and advise you the contract is correct. You may have requested a shorter settlement or specific inclusions; these need to be listed on the contract before signing.
- Pay your 0.25% deposit on the same day as you sign the contract, this is paid to the listing agents trust account and this is when your cool off period will start.
- Send a copy of the signed contract to your mortgage broker so they can obtain a formal approval for you within that cooling off period, a valuation will now also be carried out on the property
- Let’s assume your formal approval is now in and your cooling off period is set to expire in 2 days. Now you need to contact your conveyancer to organise payment of the rest of your 10% deposit. This is often paid into your solicitors trust account.
Ok now we move onto the settlement process:
- The broker will now come and sign your loan documents with you
- You will need to get building insurance for your new property. On the certificate of currency they need to note the interested party/incoming lender, eg: ANZ Bank
Other topics that might be helpful:
What if I’m buying an apartment?
- Along with the pest/building inspection you will require a copy of the strata report, this will be sent to your solicitor for review along with the contract of sale
- After formal approval you need to request a copy of the strata insurance to be provided to the lender
What if I’m buying at auction?
- There will be no cooling off period offered with an auction campaign, please discuss this with your broker and conveyancer upon starting your search
- Your 10% deposit will fall due on the day of contract being signed so any contract amendments and funds being moved around need to be organised prior to the signing of the contract of sale.
Am I eligible for the FHOG?
See here link to check if you are eligible: http://www.firsthome.gov.au/
*Please note we are not a licenses real estate agents this information is based on NSW gov websites and our own personal experience buying and selling property.