| 1. | Research the area you are buying into |
| Do your homework and research the area you’re looking at buying in. Attend as many open houses as possible to gain an idea of what each feature you like adds to the price. |
| 2. | Calculate how much you can afford to spend and pay |
| Your borrowing power is determined by your income and financial commitments, as well as your current savings and credit history.
We can advise you of the true costs involved in taking out a mortgage, including legal fees and stamp duty, as well as how to build in a buffer to interest calculations so that you are prepared if rates rise.
We can advise you on First Home Owner grants available and stamp duty exemptions.
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| 3. | Obtain a preapproval for how much you can borrow |
| This allows you to look at properties and make decisions knowing what you can spend. |
| 4. | Make an offer |
| Use the services of a real estate agent to negotiate a price with the seller. |
| 5. | Start the paperwork |
| Contact us with the details of the property you want to buy so we can get the ball rolling on obtaining formal approval. As part of this process the lender may organise an independent valuation of the property to make sure the amount you have offered is reasonable. |
| 6. | Contract of sale |
| The seller will make the contract of sale available to your solicitor or conveyancer for review. This document outlines your offer, the date of settlement and any conditions that must be met. |
| 7. | Arrange pest and building inspection |
| You should have the property inspected for pests and structural issues before you finally agree to proceed with the purchase. |
| 8. | Arrange building insurance |
| Proof of insurance is usually required by the lender as part of the lending process. The insurance does not need to take effect until settlement. |
| 9. | Exchange contracts |
| A property sale isn’t signed, sealed and delivered until the exchange of contracts. Once you and the seller have both signed the contract and you have paid a deposit the contract is legally binding. It usually takes six weeks from exchange until settlement (in NSW). |
| 10. | Settlement |
| At settlement, the balance of the purchase price and any stamp duty payable is paid to the seller and you become the legal owner of the property. |
