1- Obtaining finance pre-approval
Before you begin searching out homes, make certain you can afford to buy one. For most people, this indicates getting a loan from a bank or lender. The first step in this procedure is to get pre-approval. This would not guarantee you’ll get the very last loan, but if you cannot get pre-approval, you without a doubt won’t get the full loan. Pre-approval also enables you to recognize what rate variety you could find the money for. Don’t forget to consider different fees like bank prices (which include the lender’s mortgage insurance), shifting fees, and stamp duty.
2– Locating a property
Buying a house is a massive expense, so you don’t need to do it often. Think approximately your destiny needs and if the belongings will nonetheless be suitable for you in a while, especially the location. Is a brand-new residence in a bad location higher than an older residence in a top-notch area? Once you discover the proper property, it’s time to barter. Our advice is to do your studies. Visit many open homes, even if they aren’t the best for you. In this manner, you’ll understand more about the marketplace than the agent promoting the residence. With accurate research, you will be ready to provide a truthful charge.
3- Make an offer.
Offers are made through the seller’s actual estate agent. When making a suggestion, be prepared to alternate contracts quickly. Have your contacts and finance approval in place. The assets remain on the market until contracts are exchanged, so act quickly to stabilize them before others do. Sometimes, the seller won’t accept a settlement unless the client waives the cooling-off duration. This may be completed with a certificate signed by the purchaser’s attorney, in accordance with Section 66W of the Conveyancing Act of 1919.
4- Signing the Contract
Sometimes the real estate agent will ask you to approve a contract that involves a cooling-off period. If you do, keep in mind that terminating the contract during this period will result in the loss of the retaining deposit (0.25% of the purchase price). The seller’s lawyer drafts the contract for sale, which includes conditions designed to protect or profit the seller.
The contract is important, and every clause needs careful review. This is where a good property lawyer is crucial. They can give you quality advice about the contract, the risks, and how to reduce them.
Before signing the contract or before the cooling-off period ends, we will help you with these key points:
- Contract Advice: Understand your obligations and any legal restrictions on the property. We will explain these in plain language.
- Finance Approval: Make sure you have unconditional written finance approval. It’s risky to proceed without it, and you could lose your 10% deposit.
- Deposit: You need to pay a deposit to the real estate agent, usually 10%, but sometimes you can negotiate it down to 5%.
- Buyer Beware: There are many things to know about buying a property. Act quickly and get advice from your property lawyer. We will guide you on pest and building reports, strata properties, illegal structures, encroachments, government proposals, and title insurance.
5- Post-Exchange and Pre-Settlement
The standard settlement period is six weeks after signing and exchanging contracts. During this time, lawyers handle most of the work. As a buyer, your main task is to sign any loan documents and meet the bank’s requirements to avoid delays.
Once the bank is happy, you can start planning for settlement day. Before that day, you need to:
- Get building insurance starting on settlement day.
- Do a final inspection of the property after the seller moves out.
- Set up gas, phone, and electricity connections.
- Hire removalists. Plan to move in on a different day than settlement to avoid issues if there are delays.
6- Settlement Day
Settlement day is when the contract is finalized. On this day, lawyers and banks meet to exchange money and title documents. Once everything is confirmed, the real estate agent is notified by fax from both parties. This allows the agent to give the keys to the buyer and the deposit to the seller. It usually takes about an hour after the scheduled time to get the keys. Note that buyers and sellers don’t attend in person.
7- After Settlement
After settlement, the bank will keep the title documents and register them with the Department of Lands. The bank will hold the new Certificate of Title until the loan is paid off. Once you have the keys from the agent, you can start moving in. It might take many trips, but soon you’ll be in your new home.
Conclusion
Purchasing a home includes several critical processes, from obtaining financial pre-approval to moving in after settlement. Each step demands meticulous planning and attention to detail, specifically when it comes to recognizing contracts and handling cash. By being well-prepared and receiving professional help, you may easily manage the process and enjoy the delight of moving into your new home. Remember, thorough research and prompt action are essential for making a successful purchase.
