Guide to buying property

Purchasing a new home is an exciting time, but without preparation and the right information it can be stressful. Follow our guide and prepare yourself for the process. 

1. KNOW YOUR BUDGET

Before you start looking for a home, it’s important to know your budget. Whilst pre-approvals are not essential prior to making an offer, they provide you a clear picture of what your spending limit is and gives you peace of mind that if you find a property you’re really interested in, you can move quickly and with greater confidence. 

2. FIND YOUR HOME

Once you know your budget and have a list of must-haves, you can start narrowing down the search for your new home. It’s important to consider the home’s features but also consider the location and existing and planned infrastructure such as roads, public transport and shops. 

3. MAKE AN OFFER & CONTRACT PREPARATION

You’ve found the home you love, now it’s time to make an offer. In addition to your offer amount, it’s a good idea to include any terms and conditions such as subject to finance and settlement terms as these may put you in a stronger negotiating position.

Once your offer is accepted, the contract of sale will be prepared and it’s at this point that you’ll need to confirm details of your appointed solicitor or conveyancer.

4. APPOINT A SOLICITOR OR CONVEYANCER

You’ll need to appoint a solicitor or conveyancer to act for you to complete the sale. Their details need to be included on the contract of sale so it’s important to keep this in mind before you start. As part of their services, a conveyancer should also check all rates and taxes have been paid, check approvals and order any relevant searches. 

5. SIGN THE CONTRACT AND PAY A DEPOSIT

A deposit is required once a contract of sale has been signed by both parties. This is often addressed as part of the offer process, and it’s important to note that if you’re getting a home loan to finance the property, you won’t have access to this so the funds for deposit will need to come from savings or elsewhere. 

6. CONDITIONS AND SETTLEMENT

Prior to settlement, you’ll work through any special conditions such as finance approval and building and pest inspection. Your conveyancer will advise you of keys dates and you’ll work closely with your broker or lender to finalise finance.

On settlement day, your conveyancer will check the correct funds have been transferred, ensure payment of fees such as stamp duty and organise exchange of keys so you can take legal ownership of the property.

If you’re ready to start the journey to purchase a new home, our friends at Australian Home Mortgage are experienced residential home loan experts and can help with arranging your finance.

Visit www.ahomemortgage.com.au to learn more.