Our ProcessEXPLAINING THE HOME LOAN PROCESS
01. GET IN TOUCH
Speak to us at Finance 48 and our independent mortgage brokers will quickly help you find out how much you can borrow and which home loan suits your needs. Plus we can answer any questions about the process you might have along the way.
02. ARRANGE A PREAPPROVED HOME LOAN
If you haven’t started your property search, or are still looking, a pre-approved home loan can be useful. It gives you peace of mind that you can buy a property up to a certain amount. And it may put you in a stronger negotiating position than other potential buyers who don’t have pre-approval. We can take care of the paperwork to lodge a loan application. See our home loan documents checklist before meeting with us.
03. FIND YOUR PROPERTY
Make sure you do plenty of homework when you’re on the hunt for a new property. Research property prices in the area, potential capital growth and existing and planned infrastructure, such as roads, public transport, schools and shops.
Make sure you undergo an adequate home loans comparrison to see what else is available. If you’re unfamiliar with property values in the area, consider a full valuation carried out by a registered valuer before making a final decision.
04. MAKE AN OFFER & SIGN CONTACT OF SALE
Whether you buy property at auction or make an offer on a listing, your agreement with the vendor only becomes a legal commitment when a Contract of Sale (Offer of Acceptance in WA) has been signed by both parties.
This contract will confirm the selling price as well as any terms and conditions. Your commitment will usually be subject to bank approval, a building inspection report and a pest inspection. The period from signing a Contract of Sale to Settlement — when the property becomes legally yours — is usually six weeks (shorter in some states, such as Queensland). Note: even if you have a pre-approved loan, your lender will still need to complete a valuation of the property you have chosen before issuing full approval.
05. PAY A DEPOSIT
A deposit is required once a Contract of Sale has been signed by both parties (sometimes called ‘exchanging contracts.’) You won’t yet have access to your home loan, so your deposit will need to come from savings or elsewhere. You may also be able to arrange a deposit bond until settlement. Speak to us about your deposit options.
06. APPOINT A CONVEYANCER
You will need a solicitor or conveyancer to check the legalities of the Contract of Sale Your conveyancer will also check all rates and taxes have been paid, check land use or building approvals for the property and order any relevant searches. They may also help sort out any inspections. On settlement day, the conveyancer will check the correct amount of money has been transferred from your lender to the seller and all fees – such as Stamp Duty — are paid, so you can take legal ownership of the property.
07. COOLING OFF PERIOD
If you didn’t buy your property at auction, you have a cooling off period when you can cancel the contract, although there may be a small penalty. Cooling off periods vary from state to state. There is no cooling off period in Western Australia.Talk to us today about how we can help you into the right home finance today.