Finding a loan:
The most fundamental feature of purchasing a new home is establishing how much you can afford and which finance institution can offer you the best loan with features that can both reduce your interest payments and allow you to customise payments to suit your needs. A pre-approval can give the peace mind that you need when searching for the right home for the right price.
Applying for a loan:
When you have done all the relevant homework and selected a finance institution that can suit your needs the next step is to apply. The finance institution can then offer you a written commitment that will give you the peace of mind when searching for your new home. In most cases a pre approval is subject to valuation and limited to a set period of time so it is important that you have a basic idea of what type of property you are looking for including location, size and price.
Searching for a home:
In the past visiting various agents to find the right home was the most popular choice for would be purchasers most recently buyers have opted for the internet and its vast source of information to reduce the time taken in selecting possible purchase options. Other sources for details on properties for sale are newspapers, magazines, and simply driving around searching for homes for sale.
Once you have selected a few properties which meet your requirements the next step is to make contact with the agents advertising the properties and make appointments to inspect the homes. Real estate agents are professionals in their field and will always do their utmost to help buyers with important information regarding properties as well as the appropriate steps to take to negotiating with the vendors for price and inclusions.
Vendors Statement and Contract of Sale:
These are the legal documents that the vendor (person selling the property) must provide when putting their home up for sale. The Vendors Statement or section 32 (as it is referred to in Victoria) is a declaration by the vendor which includes important information such as the;
- Property title (this shows much of the more technical aspects relating to the property including boundaries, land size and location.
- Planning information (this defines the zoning details of the land and what its designated uses can be
- Outgoings (for example council and water rates)
- Building permits (Any structural alteration within the last seven years made to a property must pass council approval, buyers should be aware of any alterations made without relevant permits.
Making your selection:
Once you have selected a property that meets your requirements and you have carefully read through the Vendors Statement and are satisfied with every aspect of the property, you then enter the negotiation stage, which enables you as a purchaser to come to an agreement with the vendor on price and inclusions. Once an agreement has been reached contracts are signed and the purchase becomes formal and binding.
The conveyancing process is generally handled by a specialised conveyancing firm or a registered solicitor. Relevant paperwork must be compiled before settlement of the property takes place, this is all part of the conveyancing process. The conveyancer must establish all expenses such as rates payments, title searches, and distribution of funds are all taken into account and ready for settlement.
The settlement period is often set by the vendor, however can be negotiated for shorter or longer periods by agreement between both parties. During this period you should finalise your loan with the finance institution making sure that mortgage documents can be completed by the settlement date. On settlement day the conveyancers or legal representative will make sure the appropriate disbursement of funds are paid out to the relevant parties. Finally the settlement is completed and the home is yours.