1.It is important to work out what you can comfortably afford. To do this accurately an in-depth budget should be completed NEVER OVER COMMIT.
2.Determine who you will approach for advice on the various loans available. The fees, charges and how much you are able to borrow. Using an accredited mortgage broker does provide many advantages. You are able to obtain all the information for almost all lenders in one visit. An individual lender is not going to tell you the lender across the road has a better offer. You could save a lot of time and possibly quite a bit of money using an Accredited Mortgage Broker.-With Bluechip you also get the benefit of our "Big Picture" approach click here discover the "C" culture and that loan structuring can be just as important as the interest rate
3.Having established the loan type and structure that best suits you (your Broker will provide you with several comparisons as required under the Credit Legislation) a formal application is completed with the necessary supporting documents . The application is then submitted on-line to the selected lender and the supporting documents faxed to them. A 'Pre-Approval' loan is recommended before beginning negotiations on a property purchase click here Home Loan Pre-Approval A 'Pre-Approval' loan is valid for between 3 to 6 months, depending on the lender and is subject to various conditions.
4.Once the application has been assessed, the lender will provide a conditional approval which may require confirmation of some documentation and/or valuation of the property,
5.Time now to decide on your Solicitor or Conveyancer who will guide you through the purchasing process -see A Solicitor or a Conveyancer ?
Bluechip can be of great assistance here as well by providing Residex Comparative Market Analysis Reports – which will assist you in determining what a property is really worth, through sales history and on-the-market comparisons
8. The offer having been accepted by the owner/vendor of the property you are now back in your Solicitor's/Conveyancer's hands
9 The most common practice is then, under your Solicitor's/Conveyancer's guidance, is to sign the contract & advise your Mortgage Broker the details
10 Essentially the property is still under negotiation until the purchasers copy and the sellers copy of the contract are exchanged.& your 10% deposit paid (by cash or by Deposit Bond)
11. Prior to being able to exchange contracts your Solicitor/Conveyancer will need to do their work which is best outlined by clicking here Conveyancing.. Also in the majority of cases you will need to obtain a Building Inspection Report & a Pest Report click Property Inspections & Pest Reports. Last & most importantly you will need an unconditional approval from your lender (this process usually involves a Bank Valuation which can take 3-4 days or longer if access is difficult)
12. The exchanging of contracts / paying the deposit process and the 5 day cooling off period are best described here Contracts & Deposits
13 Now the clock starts ticking, as from the date of exchange most contracts give you 28-42 days to complete the purchase, called the 'Settlement'. Your Solicitor / Conveyancer, the Lender, Real Estate Agent and your Mortgage Broker all work together to make sure this happens in the time required.
14.Just prior to settlement it is always advisable to arrange for a final property inspection to make sure everything is as it should be. If it is not, it may be necessary to delay the settlement. You also need to make sure that you have Home & Contents Insurance in place and consider setting up a Life & Disability Insurance Policy to cover your mortgage.
15.Once Settlement has been completed the Real Estate Agent will hand you the keys to the HOUSE, now you can crack open the Champagne and celebrate your NEW HOME or INVESTMENT purchase.