If you’re looking to buy a home in Australia, well there are a few things you need to know about the process. In this post, I’ll outline the steps you need to take when buying a home and securing a mortgage. I’ll also provide some tips for ensuring that your purchase goes as smoothly as possible. So, whether you’re just starting out on your house-hunting journey or you’re almost ready to make an offer on a new place, read on for everything you need to know about buying a home.
How to begin the home buying process
I recommend that the first step in buying a home is to get pre-approved for your mortgage. This means that a lender will assess your creditworthiness and give you an idea of how much money they are willing to lend you. I believe it’s important to get pre-approved, as firstly it shows sellers that you’re a serious buyer and additionally it can help speed up the process once you find a property you want to buy.
Next, you’ll need to start looking for properties. Keep in mind that it’s best to have a good idea of what you want before starting your search, as this will make it easier to narrow down your options. Once you’ve found a few properties that interest you, it’s time for the fun part: inspecting them!
The home inspection process and making an offer
Making an offer on a home can be a nerve-wracking process while you wait for the vendors to accept. However, it’s best to remember that the offer is just the beginning of a negotiation. In most cases, the vendors will come back with a counter-offer and you’ll go from there.
One important thing to keep in mind during the process is arranging a pest and building inspection. These trades will check the property for any damage or faults that need to be fixed before you finalised the purchase. It’s important to have this done, as you don’t want any nasty surprises after moving in. If there are any problems with the property, you can use the inspection report to negotiate a lower price with the seller.
Most properties are sold subject to finance being approved and the home receiving a satisfactory pest and building inspection. Your solicitor or conveyancor usually undertakes the necessary searches during this time too.
What you need to know about mortgages in Australia
There are a few things to keep in mind when taking out a mortgage in Australia. Firstly, you’ll need to make sure that you have a deposit of at least 5% of the purchase price, as most lenders will require this as an absolute minimum, but sometimes they’ll request a 10% deposit.
In Australia, most mortgages have a period of up to 30 years in which you will be given to repay the loan. And during the application process, I’ll be able to provide you with the latest products on offer from the lenders I work with. It’s important to consider more than the interest rate alone, as the whole loan package needs to be the best option to suit your circumstances.
There are a few things that you can do to make the loan application process smoother. Firstly, make sure you’re well organised and have all of the relevant documents ready to go when it’s time to lodge. You’ll need to provide proof of identity, some recent payslips, details of any assets, bank statements and a record of any other debts or liabilities.
What happens during the final stages of buying a home
While your solicitor or conveyancer is busy doing searches on the property and I’m processing your loan application and lodging it with the lender, you should consider hiring your removalists. On the actual date of settlement, you’ll be sent a message once the paperwork has been finalised and you can collect the keys to your new home!
While this is a very simple overview of what to expect when buying a home in Australia, I’d love to help you with advice and information specific to your situation. Just give me a call or drop me an email.