10 Steps to Buying a House

2019-05-17 | 20:41:52

Understanding how to find & finance the perfect home for you!
 
Buying a house requires a lot of time and effort, but these 10 steps can help make the home buying process manageable and help you make the best decisions possible.
 
1. KNOW THE MARKET
Do your homework and research the area you are buying into by browsing newspaper and internet property listings and speaking to TU Realty Group
Attend plenty of property viewings and auctions, each time asking yourself:
• Does it suit my needs? • What are its faults? • What are its features? • How does its price compare with other properties seen?
The more informed your decision, the better chance the property you buy is the right one in terms of price, location, value, size, and lifestyle.
 
2. DO YOUR SUMS
Once you have an idea of the property market, you need to know what you can afford to spend and repay. Your borrowing power is determined by your income and financial commitments, as well as your current savings and credit history.
TU Mortgage Solution can help you work out how much you can borrow and what type of loan will suit your budget and lifestyle.
 
 
3. GET THE TICK OF APPROVAL
Now you know how much you can borrow, make an appointment with us to have your finance pre-approved. While you can always leave this step until after you find a property, pre-approval is recommended because it gives you a realistic budget to go house hunting with and it ensures you are treated as a serious buyer by agents.
 
4. MAKE AN OFFER – CONTINUE THE PROCESS
When you have decided on a price that you feel comfortable with and wish to present the vendor with your offer to buy, TU Realty Group, Realtor may ask you to sign a conditional contract for the amount that you are prepared to pay for the property. Seek legal advice at this point prior to signing anything, or call us and we will guide you from here.
 
5. START THE PAPERWORK
Contact us with the details of the property you want to buy so we can get the ball rolling on obtaining formal loan approval. As part of this process, the lender may organize an independent valuation of the property, to make sure the amount you're offering for it is reasonable. You will need to provide us with a range of documentation.
Around this time the seller will make the Contract of Sale available to your solicitor or conveyancer for review. The contract is a legal document that outlines your offer, the date of settlement and any conditions that must be met before the sale goes ahead (e.g. subject to bank finance).
Take the opportunity to perform another inspection on the property, checking all fittings and fixtures are in place.
 
6. ORGANISE INSURANCE
Proof of building insurance is usually required by your lender as part of the home loan process. We can help arrange this. The insurance can take effect from the date of settlement or even before settlement if you are not aware that the seller has a current insurance policy.
 
7. ARRANGE INSPECTIONS
As the seller won't provide you with any guarantees about the structural soundness of the home, it is wise to have a building inspection undertaken before you exchange contracts.
You should also have the property inspected for pests because the building inspection doesn't include the detection of termites and other timber destroying pests.
Also, check with the local council and the state government roads and traffic authority about whether there are any future developments planned that may affect your home.
 
8. UNCONDITIONAL CONTRACTS
Once your finance has been unconditionally approved, the building and Inspection reports are satisfactory to you as the buyer, the contract may then become unconditional and you can sign with your Solicitor. At this point, you are bound to fulfill the contract and proceed to settlement.
 
9. SIGN MORTGAGE DOCUMENTS
Shortly after your loan approval, your lender will prepare their mortgage documents and loan agreements and forward to you or your solicitor to sign. We welcome you to bring these forms to us for assistance in understanding and completing them correctly. Once the lender has received the fully executed mortgage documents they can then prepare your loan for settlement. Generally, at this time, payment arrangements, direct debit structures, and new account information are finalized.
 
10. PAY AND SETTLE
 
At settlement, the balance of the purchase price is paid to the seller, and you become the legal owner of the property.
 
THE KEYS ARE YOURS - CONGRATULATIONS!
 
NOTE: The process of buying a house will differ depending on whether the house is sold by private treaty or at auction. Rules may also vary in each province