Eight Steps to Purchasing a Home

By 20 January 2017Finance
purchasing a new home

Purchasing a home is one of the biggest steps you take in your life and you do not want to end up buying a property with any serious defects, such as a house infested with spiders or white ants. Therefore, it is better to carry out a thorough research before making a decision. Following are eight steps to effectively take a decision of purchasing a home:

Consult a Local Broker in Australia

It is wise to consult a broker in Australia before you begin looking for a house, as he or she can be a useful source to tell you how much you should borrow and might also help you in choosing the right loan package with reasonable repayment terms. Not only will it enable you to estimate the budget you need for purchasing a home, but also allow you to screen the properties that fall within the budget.

Chat to Hunter Galloway’s team of brokers about how you can maximise your purchase.

Lodge an Application for Pre-Approval of Loan

Once you select the lending institution and loan package that is in line with your financial plan, a broker can assist you in completing and lodging a loan application. This makes it easier to make an honest offer when you come across the right property.

Hunter Galloway’s tip: Streamline this process and get some free advice from our team of brokers. You don’t need to do the dirty work, leave it to us instead.

Create a List of Essential Features to Find the Right Property

Having a pre-approved loan allows you to think ahead and plan your property search wisely. Create a list of essential features that you look for in a house. This will keep you focused on purchasing a home that is suitable for you and meets your requirements.

Carry Out Market Research

Regardless of what you intend to buy, carrying out market research is really important to identify the right price and reasonable quality of a product. Because purchasing a home is a huge investment, you must conduct local market research to find out the current prices of a type of property you are looking for, as it will enable you to avoid paying above the market value.

Find the Right Home

There is no substitute for physical inspection when it comes to purchasing a home. It allows you to see other attributes that you would have otherwise ignored while searching for a property, such as its locality. Whenever you plan to visit a property, plan a building and pest inspection before making a purchase as it will disclose the problems beforehand that would otherwise be costly to fix.

Make a List of Recommended Solicitors

You would need the services of a conveyancer or solicitor to take care of the legal matters. They review the contract or sale of any property you wish to buy and handle the settlement process. Therefore, always make a list of good solicitors recommended by colleagues, family, or friends when you are purchasing a home.

Hunter Galloway’s tip: Ask us for advice on this one!

Attend the Auctions or Purchase a Property Privately

Once you are ready to make an offer or bid at an auction, you must be ready to pay the deposit. Bear in mind that if you bid at an auction, there is no turning back from the contract. But if you are purchasing a home privately, you may be able to get a time period during which you can cancel the purchase transaction. However, once you pay the deposit money, you’re entitled to the property.

Hunter Galloway’s tip: Make sure you take out insurance before you have a financial investment in the house.

Look After the Approval and Settlement Process

Once you have taken all the above mentioned steps, a copy of signed sale contract will be forwarded by the broker to a lending institution where arrangements are made for the property valuation. If the result of valuation is satisfactory and other loan terms have also been met, the lender will grant full approval of a loan. This is where your broker and solicitor come into play as they transfer the property into your name and make sure the settlement takes place within a specified period.

After successful completion of the entire process, all you have to do is pack your belongings, move to your home and start settling in. Now it’s time for the fun part – throw a party!

Chat to Joshua Vecchio now on 1300 088 065 or email joshua.vecchio@huntergalloway.com.au now!