Process of Buying a Property – Part II

In my last blog I gave tips on researching and budgeting for a property. In today’s post I will follow on with more tips on the process of buying.

 

3. When you have done all your property research, worked out how much you can afford and have found the home of your dreams – it’s time to find a lender.

 

There are a lot of home loan lenders out there, so before you decide on one make sure you shop around. You can do a lot of your research on the internet and there are even websites out there that can help you compare different home loan types.

 

A couple of things to think about when deciding on a home loan are whether or not you can redraw on the loan and whether you will be penalised if you move or decide to re-finance?

 

Also take into consideration that there may be interest rate rises again so you need to be prepared to make mortgage repayments at a higher rate then what you initially signed up for.

 

4. Once everything is organised and you have taken the step to buy, the buying process itself begins.

 

Seek advice from a Solicitor or Conveyancer once you have found a property. Normally in NSW, a purchaser will sign a contract and leave a .25% deposit and enter into a cooling-off period. Your solicitor will then arrange your Building and Pest Inspections and make sure you have full loan approval (you may need a valuation done on the property too) before paying the balance of the 10% deposit (unless otherwise stated) to generally the selling agent.

 

There is usually a 6 week wait (after you and the seller have signed) before settlement and a date will be mutually decided between the current property owners and yourself.

 

During this time it is best to start organising your move (if you plan on living in the property) and insurance. 

 

On the day of settlement ask to meet the agent at the property for one last inspection before the final cheque is handed over (to ensure no damage has been done since your last visit) and then get ready to be a property owner!

 

Any questions whatsoever, don’t hesitate to send me a message.