Purchasing your first home is a major step, and there's a lot to consider. From borrowing money to signing contracts, if you know what’s coming next you’ll find yourself less stressed by the process.
Work with a broker: The first step is to contact a mortgage broker to discuss your budget and objectives. Early on in the process, contact your broker for assistance in determining how much you can borrow and what you can receive for that amount of money. We have a great working relationship with McLean Home Loans so we can point you in the right direction.
Do some research on the properties that are available in the area where you wish to buy during this period. Make contact with a few real estate agents to express your interest and to describe what you're looking for. It's too early to start making offers, but it will aid in the development of some relationships.
Sort out your finances: The amount you can borrow is determined by your monthly income, debt, and spending habits, as well as your deposit. It's a good start if you already have a deposit; otherwise, it's time to start saving. Eliminate or combine your debts and spend as little as possible in the months coming up to applying for a loan. The better your financial situation is at this point, the more likely you are to be approved for a loan.
Documents: Purchasing a home entails a significant amount of paperwork. Now that your finances are in order, the next step in purchasing a home is to work with your broker to compile all of the paperwork you'll need to apply for a loan. This includes bank statements, payslips/income verification, and information about any other assets you own. In addition, you'll need identification and confirmation of residency in Australia.
As a first home buyer, you may be eligible for grants or concessions. Inquire with your broker about potential cost-cutting opportunities. Take these documents to your prefered lender for pre-approval, which means the bank will provide you conditional borrowing approval.
Shopping: It's time to begin shopping now that you've received pre-approval. Look for houses or apartments that meet your requirements. Always keep your budget in mind and follow your agent's recommendations. Once you've found the perfect home, make sure to have all of the necessary inspections completed before making an offer.
Your pre-approval is conditional, and it could expire in a few months. If you're having trouble finding the right property, keep this in mind.
Finalise Approval: Leave it in the hands of your broker to speak with your lender and finalise your loan once your offer has been approved. Transfer your deposit to the real estate agent's holding account while your broker finishes your loan so they can pass it on to the seller.
Settlement: The process of transferring ownership from the prior owner to you is known as settlement. You'll need to engage with a solicitor/conveyancer, who will handle all of the legal details. Be prepared to wait as the procedure can take four to six weeks (or even more if you have negotiated an extended settlement).
Time to move in: Collect the keys from the agent and call it a day. Congratulations on your first home purchase.
Reach out to the team at Lands Real Estate for assistance in connecting with a mortgage broker or finding a property that fits into your budget.