Property Buying Process - BUYING A PROPERTY WITH A MORTGAGE

The Process:

1. It is important to work out what you can comfortably afford. To do this accurately an in-depth budget should be completed ( one is available on this site.) 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.

3. Having established the loan type and structure that best suits you a formal application is completed, a list of the supporting documents required to complete the application is available on this site. The application is submitted on-line to the selected lender and the supporting documents faxed to them. This application can be for a ‘Pre Approval’ loan which is recommended before beginning negotiations on a property purchase or a ‘Full Approval’ where an offer to purchase has been accepted by the owner of the property. 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 either a conditional approval which may require confirmation of some documentation or valuation of the property, or an ‘Unconditional Approval’ in which case you are now in a position to EXCHANGE CONTRACTS on the purchase. Providing you are happy to sign the loan offer documents offered by the lender and consulted with your Solicitor / Conveyancer.

5. Now the clock starts ticking, as from the date of exchange most contracts give you 28 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.

6. 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.

7. 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.