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Unless you’ve purchased a home before you may not know what is involved and what to expect. It may even depend on the type of property you are purchasing, because buying off the plan can be different to buying a pre-existing home for example.
Regardless of the type of property the following is an overview on the 6 steps that will get you from a pre-approval to moving into your new home.
Step 1. The preapproval
This should always be your first step, if you are thinking of purchasing a property contact your Mortgage Broker and submit a pre-approval so you know how much you can afford and you are therefore shopping in the right price range.
Step 2. The contract of sale, offer
This is when you sign an offer on a contract of sale, typically the price will be negotiated until both parties agree on an amount.
It’s always a good idea to sign this contract with a finance, building and pest clause to protect yourself.
Step 3. The contract of sale agreement
Once the amount is agreed on the contract is active and will need to be sent to your Mortgage Broker and Conveyancer.
Your Mortgage Broker will order a valuation on the property and aim to get you a formal approval before the finance clause expires.
Step 4. The contract goes unconditional
Once you have completed the Building and Pest inspection (and you are happy with the report) and your Mortgage Broker has issued you with a formal approval your Conveyancer is advised you are ready to go Unconditional on the contract.
Once your contract is unconditional then the Lender will issue loan contracts and all parties will start getting ready for settlement.
Step 5. Sign the loan contracts
Typically, there are quite a few documents that need to be signed at this point and you will need a Justice of the peace to witness the two Mortgage Title documents.
It’s a good idea to go over these loan contracts with your Mortgage Broker so you can both make sure they are in order and you don’t have any outstanding questions.
Step 6. Settlement Day
Once the loan documents are sent back to the lender they will take the time to go over them and make sure they have been completed correctly. Once they are happy with the documents they will contact your conveyancer to let them know they can book settlement on your behalf.
The best part about settlement day is your conveyancer and lender will do all the work and physically attend your settlement and usually you get advised once it has all been completed that you are able to pick up your new house keys.
Want to know more but hate to read, listen to it on the Podcast here and remember to join the mailing list today to get a free copy of our Home Buyers Guide.
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