The Property Buying Journey: Your step-by-step guide
Why consider property buying?
For some, the dream of home ownership is driven by the desire for independence. For others, it is a calculated decision to build future wealth or you might simply not want to miss out on the chance to get on the property ladder while prices continue to rise. Whatever the reason, know what to expect when property buying with our step-by-step guide.
1. Attain a deposit
Getting a deposit is shows that you are serious about your property purchase. You will find deals being marketed with a set deposit. However, these advertisers have various eligibility requirements such as using their in-house finance and the property being only in selected estates. There is a lack of flexibility and transparency here but we can help out with finance control and constructing a deposit through various strategies like receiving help from parents and budget-building.
2. Know how much you can borrow and your preferred lender
It is natural to seek the opinions of friends and family about the banks they use, or check out advertised rates and comparison sites, but all these sources are usually unreliable. Finding the cheapest rate and knowing your borrowing allowance are not quite so simple and often intertwined; for instance, a lender may offer lower rates but be more strict when assessing your borrowing capacity. We take your circumstances and needs into account to negotiate a suitable loan when property buying. Once you know exactly how much you can borrow, you can work out the maximum payment which includes extra costs like transfer and legal fees.
3. Search for the right property
Unlike most brokers or lenders, we make property buying easier with negotiations and reports on existing properties with past sales histories. We can also find you reputable builders and developers, and organise your support team of accountants, conveyancers, quantity surveyors (if investing), and pest and building inspectors. Before making any property offers, check with us if there are any issues with attaining finance on a certain property. There might be restrictions based on the postcode, size or type of the property.
4. Secure the property
When purchasing via a private treaty, do request for a two-week finance clause even if you possess a pre-approval. This gives you time to ensure everything is correct before being locked in to the purchase and putting your deposit at risk. Purchasing at auction? Be aware that there is no cooling-off period or finance clause option so first confirm that you will be able to attain finance on the property.
Once you have agreed on a price, these steps will follow in quick succession:
– Engage your legal representative to check the contract for you. (This should be done before the auction if purchasing that way.)
– Exchange contracts with the vendor or developer.
– Pay the agreed deposit or holding fee.
– Notify your broker of your intention to buy and provide them with a copy of the contract.
5. Attain formal approval from the lender
We will now work to get your home loan approved as quickly as possible. This includes providing the contract to the lender and setting up a property valuation, who may also need copies of certain documents like pay slips and savings accounts statements. Upon approval, we go through the loan documents with you, return them to the lender after signage and coordinate the settlement of the property on the agreed date. By now, you would have also completed the First Home Owner Grant if it applies to you.
At this stage, we recommend engaging in the Money Lab Mentoring Program. As part of this program, we can organise things such as wills and insurance for both the property and yourself so that you are protected in case of unforeseen events.
6. Arrange settlement
Organise a pre-settlement inspection one to two days in advance to check that you are 100% happy with the property’s condition. It is around this period that your broker and legal representative will have consolidated if any extra funds are needed for settlement and which account they should be in – which will usually be your legal representative’s trust account or lender’s savings account.
Your legal representative, vendors and lender’s solicitors will attend your settlement to exchange cheques, the title on the property and ensure that all the services and rates are paid up-to-date. Stamp duty and any fees for the bank and your legal representative will also be paid then. With the purchase completed, your agent will release the keys to the property. Congratulations – you are now a property owner!
7. Note ongoing service
Our services do not end here though. Contact us if you need any financial help and as part of our mentoring service, we offer ongoing support in managing your loan. This includes regular financial Health Checks every 18 to 24 months to ensure that your loan is still the best on the market for you and that you stay on track towards achieving your goals.
For us, it is more than just purchasing a property – we are helping you own one. To get started on property buying, get in touch with us now.