We are all geared up and ready to buy our 1st property. Can you confirm please if we have the process right.
1. Put in an offer in writing to the owner/agent
2. Put down deposit and agree on settlement date
3. Apply for loan
4. Pay balance on settlement date
5. Find settlement agent ? (What is this for?)WE WOULD BE VERY GRATEFUL FOR ANY ADVICE OR CORRECTIONS TO OUR SIMPLISTIC APPROACH.
THANKYOU VERY MUCH
John and Paula
1. Yes, written offer to the agent.
2. You dont have to put down a full 10% deposit initially. When you sign, you’ll sign on usually a 30, 60 or 90 day settlement. What one it is is up to you and the vendor.
3. Yes, I’d say use a broker, there are very knowledgable one’s on this forum. Dont forget your building and pest inspections.
4. Your lender will pay the balance on settlement date.
5. Your conveyancer, solicitor handles transfers of title, registrations etc. They carry out the duties of a settlement agent.I’d recomend you guys use your parents or a family freind whose bought property before to help you through the process.
Settlement Agents are predominantly a WA thing. I would be going to one before signing anything. They give some pretty good tips.
Regarding your loan, I would seek a pre-approval BEFORE signing anything to do with property. Also discuss the location you are looking to purchase in and the property type. Some postcodes are restricted as well as some property types.
Walk into the deal knowing you have the support of a settlement agent, a mortgage broker and a pre-approval from a lender. This will empower you to negotiate a better deal in many cases.
Robert Bou-Hamdan
Mortgage AdviserI agree with TMA!
Get a pre approval first, this lets you know you can really afford it and speeds things up.
And use a solicitor. check with them before signing anything.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
get your finances in order first. then you know how much you can spend.
Whilst I also agree in trying to get pre-approval first, if you have foud a good deal and dont want to let it pass you could put in an offer subject to finance if the vendor agrees (in fact in WA this is common and standard wording in the contract).
I purchased my first IP with pre-approval in place, but 2nd (in WA) without, but ST finance by a certain date. I only did this because an opporunity came up earlier than expected.
BUT:
* it was a mad rush
* I had already got the paperwork moving
* I had a fairly good idea what my budget was from my own analysis of what I could affordIf you can get pre-approval first, all the better.
Rgds
PeterThankyou so much to everyone, I am very grateful for all your advice
Kind Regards
PaulaJohn and Paula
You must be logged in to reply to this topic. If you don't have an account, you can register here.
