And the next few weeks sees some of those calendar events that are set in stone really come to the fore – and if you follow this step-by-step guide you stand a better chance of moving into your dream home.
Here is what happens:
- Australia Day
- The kids go back to school
- There is an outpouring of homes listed for sale
But if you want to buy one of these properties, here is what you need to do with your broker so that you are set-up for success, to land the dream home and move in in as enjoyable a manner as possible.
- Get Pre-approval Ready
Your broker can arrange pre-approval for you. Pre-approval is important for you as it allows the banks to assess how much they will lend YOU (subject to finding a suitable property). Importantly, they will have looked at things like credit and employment histories to assess your suitability for a loan
- Have your cash in one spot especially your deposit
At some point you will have to pay a deposit of as much as 10 per cent of the purchase price. In such a case, its important that you have the funds ready to go. There’s no point in having them locked up in a ‘high’ interest savings account paying 2.5 per cent if you lose the property.
- Go to as may opens as possible
Just visiting as many properties as possible will give you great design ideas so you can work out what you want from a home; critically it will also help you work out what a property is worth so that, when you come to bid at an auction, you will know what’s in your price range.
- Pest inspections
Termites and shonky builders are the fear of every home buyer. An inspection can cost you a few hundred dollars. But not paying for such an inspection could cost you many thousands of dollars.
- Pay Your Deposit – and understanding what you are signing up to
Some states have a ‘cooling off period’ or ‘finance clause’ in their contracts which mean you can reasonably back out of a purchase. But, say you buy at auction, chances are that you are now committed to following through and buying that property – its really important that you have followed the first four points above
- Get your broker to order a bank valuation
In point 1, I mentioned ‘finding a suitable property’. Your broker can arrange a bank valuation for you. Assuming the valuation comes back fine, this is the last piece in the jigsaw puzzle for you getting finance.
- The bank gives you unconditional approval – and loan documents are issued
Get ready for a pile of legal documents to be sent to you. If you need help deciphering them, call your broker. For legal reasons, some banks even require you to present yourself at a branch – your broker will know which lender does what and how
- Loan documents are returned
If you sign the legal documents and send them back to the bank yourself, let your broker know you have done it. You would be amazed at how often these documents get lost in the mail and a purchase is delayed because they must be re-issued and re-signed.
- Bank confirms it is ready to settle
This is the second-best day in the process. Once the bank has received the signed documents from you, it certifies you and tells you broker that they are ready to settle the loan. Your conveyancer then books in a settlement date with the bank.
- Make sure your contribution is at the right spot
If you are due to contribute money on top of your 10 per cent deposit, it now needs to be available at settlement. In the olden dayes, borrowers had to get a bank cheque for a specific amount. This used to be one of the most stressful parts as clients had to rush money around the country within a tight deadline.
Nowadays, it is fairly easy to set up an account with your new lender, leave the money there a few days before and authorise the bank to draw on these funds for settlement
- Your conveyancer settles
Choosing a good conveyancer is as important as choosing a good mortgage broker. They need to be really good at logistics as they are often dealing with your bank, an outgoing bank and you – and you are stressed. If they get their timing wrong, the deal falls over and you can’t move into your home for another day or so.
- You pick up the keys!!!!
This is the very best day in all the process. Your broker and/or conveyancer calls you to confirm your purchase has settled and that you can move into your new home – welcome to the rest of your life!
Buying a property is not straightforward – but it can be very rewarding. If you want to minimise the stress and maximise the enjoyment from buying a property, please feel free to contact me, Graeme Salt on 1300 30 67 67