1. Have you saved a deposit?
The most that banks can lend to you for a home loan is 95% which means you will need to save up 5% before you apply for a home loan. An additional 5% will be needed to cover purchase costs such as stamp duty
2. Have you spoken to a mortgage broker?
Finding the right bank to apply with can be difficult and time-consuming especially if your situation is unusual. A mortgage broker can find the right home loan for you from a range of major banks and specialist lenders, saving you time and money.
Please enquire online or call us on 1300 889 743 to speak with one of our expert brokers.
3. Have you been pre-approved?
A pre-approval is basically where the bank agrees to approve your loan subject to valuing the property you plan to purchase and other conditions that the lender has determined.
4. Have you organised your team?
Now that you have your broker and pre-approval, it’s time to gather the rest of your team of qualified professionals. A conveyancer can handle all of the legal matters involved in transferring funds and the property title into your name during the sale process. If you’re a property investor, you might consider enlisting the expertise of an accountant.
5. Have you found a property?
Nowadays there are a lot of online real estate websites that not only tell you what properties are on sale but can give you an extensive owner/rental history of the property itself. Of course, the only way to truly fall in love with a home is to get out to open houses and see it for yourself.
6. How do you value a property?
How does the asking price of your property compare to those of similar properties sold in the area in the last six months? Make sure you research sales as well as the median house prices and auction clearance rates in the area to make sure you’re getting the best price.
Better yet, why not ask our brokers for a free comparable sales report.
7. Are you prepared to negotiate on the price?
Negotiations can be quite difficult because you’ll usually be dealing with the real estate agent and not the vendor directly. The best strategy is to not appear to be too keen and to hint that you are in negotiations to buy another property.
8. Have you signed the contract of sale?
If possible, ask for a two-week cooling off period or longer when signing the contract just in case there are delays with your formal approval or you decide to back out of the sale.
9. Have you been formally approved?
Unconditional approval means the lender has accepted your property and fully approved your loan application.
10. Have you arranged for an inspection?
Your pest, building and strata inspections should be completed during the cooling-off period.
The main purpose of this is to ensure that the property is sound. By accompanying the inspector around the property you can learn first-hand any potential problems that may arise and how best to rectify them once you’re the owner.
11. Have you paid your full deposit?
The full deposit will usually need to be paid at the end of the cooling-off period although this varies from state to state.
12. Have you signed your loan offer documents?
After formal approval, it will take around a week for you to receive the loan offer documents from the bank. Make sure that you sign and return the loan offer promptly to avoid delays in your settlement!
13. Have you sorted out your insurance and applied for government grants?
Most banks will require you to buy a minimum amount of insurance before settling your loan. This will vary depending on whether you are buying a house, a unit, a townhouse or vacant land.
Don’t forget, each state has its own housing assistance grants. If you are eligible, make sure you apply for the grant to reduce your total costs.
14. Have you undertaken a final inspection of the property?
Now it’s time to do a final inspection of the property to make sure that its condition has not deteriorated since you signed the contract of sale.
15. Your purchase is settled!
This will normally take about six weeks after you have signed the contract of sale. Luckily, your conveyancer will be doing most of the work for you!
Congratulations! You’re now a home owner!
For more detailed information and tips on these steps, go to our home buying process page.
If you’ve saved a deposit and want to speak with one of our expert mortgage brokers about a pre-approval, please call 1300 889 743 or enquire online.