So you have been pre-approved, what happens next? After you have been pre-approved its time to start looking for your dream property, now the exciting part begins!
Starting to look for your dream home
The first thing is you’re going to start looking on RealEstate.com.au, Domain, and local real estate agents websites to get to know your local area.
When you’re looking online be sure to select your bracket that you want to purchase in. So let’s say you’re looking at a $500,000 purchase.
You might be putting houses between $400,000 and $500,000. An interesting thing we found in the past is sometimes you’ll get higher priced properties come up in this bracket. So reduce your bracket a little bit further maybe from $300,000 to $500,000 which gives you a far larger range of properties to look out.
The best part of these websites is that you can set up real estate alerts, so when properties you like come up on the market you’ll be the first to view it.
Now, remembering when you do find the right property to research and find as much information as you can online. You can use websites like Onthehouse and RP Data. Some sites like RP Data will charge you a fee to obtain a report, or even require you to get a subscription – luckily here at Hunter Galloway we’ve got access to RP Data, so any reports you need feel free to contact us, and we’re only too happy to provide them.
Does the type of property matter?
Unfortunately, not all properties are acceptable for all banks! One thing to keep in mind is when you do find the right property to ensure that you’ve checked with your mortgage broker if the property is acceptable.
Things like properties with less than 50 square meters internally can be an issue with some lenders. Also if they’re greater than two hectares that can be another issue.
As a broad rule of thumb, make sure you double check with your broker before buying any property that fits in these criteria:
- Smaller than 50 square meters inside
- Land size over 2 hectares
- Doesn’t have standard title and zoning
- Not in a major town or city
- Includes incentives like furniture packages, or rental guarantees
- Is run down, or in disrepair and needs lots of work to fix up
So it’s always important to double check with your broker before you start going too far down.
How do I make an offer on a property?
Now you’ve finally found the perfect property, what happens next? When you find the right property you’re going to want to put an offer on it.
At this point it doesn’t hurt to get your conveyancer or solicitor to check over the contract before you go ahead. You want to ensure that you have standard finance clauses in the contract. Depending on the state you may put five day cooling off period in the contract. You might put 14 days to finance. It might be longer and it might be shorter.
Once again, check with your conveyance or talk to your mortgage broker, and they’ll be able to guide you through this. This is something that we do a lot here at Hunter Galloway is ensuring that our first homeowners have the right terms to be competitive, as well as to protect them if anything does go wrong.
Do I put the offer in writing?
When you do make an offer ensure everything’s in writing. Any verbal offers to the real estate agent can and might not be given to the vendor. So everything in writing is really important. When you’re putting conditions in your offer insuring the finance clause is in there. If you want to do a building and pest, once again, make sure you’ve put that into the contract they can check for termites or other structural issues with the building.
And how much deposit should I pay?
You will need to pay a small deposit when you do put down an offer. Depending on the state, once again, it can range from 5% to 10%. It might be more, it might be less. The funds are held in the real estate agents trust, or solicitors trust account until settlement goes through. These funds can also be refunded prior to the contract becoming unconditional, or if you still have time left on your cooling off period.
So what are the steps quickly?
Remember when you’re looking at property utilize realestate.com.au and Domain to give you an idea and short list property. Once you’ve short list and found the right property do lots of research and use the resources online before you even go and see it. Once you’ve seen the property make sure you use your mortgage broker, conveyancer, and building and pest inspector to help you get the best outcome. If you’re having any dramas you’re not quite sure feel free to contact us any time at Hunter Galloway and we will only be too happy to help.
Help this is all confusing
If you are wanting to buy a home speak with one of our experienced mortgage brokers to walk through the next steps with you.