Steps to buying your Home
STEP 1: DO YOUR RESEARCH
If the prospect of buying your first home is a little scary, do not worry. Do your research first and you will feel much more confident and be less likely to make mistakes.
Get a feel for price and location by checking out the real estate sections in newspapers and magazines. Talk to real estate agents in the areas where you’d like to buy. Also, speak to friends and family who’ve bought property. Start going to open homes and auctions so you become familiar with the process and learn what you need to look out for when purchasing a home.
STEP 2: DO YOUR SUMS
Use the calculators to work out how much you can afford to borrow.
Aside from the purchase price of your new home you may need to pay for things like stamp duty, legal fees and mortgage insurance. If you are eligible for the First Home Owner’s Grant(FHG) you can use it to contribute to costs or add to your deposit. Refer to Stamp Duty Calculator.
Stamp duty is the biggest expense after your mortgage and varies from state to state. You pay one stamp duty on the purchase price of the property and another stamp duty on the amount you borrow. Use the calculator below to work out how much you will need to pay.
STEP 3: FIND THE RIGHT HOME LOAN
Lenders offer a range of home loans and with Quantum Investor’s assistance we will find one that perfectly suits your financial needs and lifestyle.
STEP 4: LET’S GO HOME HUNTING!
Aside from basics such as the suburb and number of bedrooms there are many important factors to keep in mind, depending on your circumstances. For example, is it within walking distance of a primary school? How far to the train station? Are there shops close by?
STEP 5: HIRE A PROPERTY LEGAL EXPERT
While you are house-hunting it may be wise to hire a solicitor or conveyancer to take care of the legal side of buying a home. Ask Quantum Investor to recommend someone.
STEP 6: MAKE AN OFFER
Found a place you would love to call home? Then take a deep breath and make an offer!
There are two types:
Conditional offer
You will be legally bound to buy the property if all of your conditions are met. However, if they are not, you can back out. Conditions may be subject to valuation, finance, title search, building and pests inspections or anything else you think is relevant and reasonable.
Unconditional offer
If you are 100% sure that it is the property for you and you have the money to buy it then you can make an unconditional offer. If the seller accepts you will be legally bound to go through with the sale. If the seller wants to negotiate the price the real estate agent will act as the go-between. If agreement is not reached – you can withdraw your offer. Remember to get your legal representative to check any changes to the contract of sale.
STEP 7: EXCHANGING CONTRACTS
When your offer or bid is accepted you and the seller will sign and exchange the contracts of sale. You will also pay the deposit (anywhere from $1,000 to 10% of the purchase price) to the real estate agent who places it in a trust account.
Get your legal representative to check the documents before you sign because once contracts are exchanged you are legally bound to the purchase. Your legal representative will also do the conveyancing, which is the legal transfer of the property to your name. Now is also the time to take out home/building and/or contents insurance to protect your valuable new asset – Quantum Investor can assist you with this process.
STEP 8: FINALISE YOUR HOME LOAN
The next step is get your loan formally approved. Even if you have conditional approval for your loan extra information may still be needed, such as a property valuation.
Once everything is in order you will be given a Loan Agreement detailing the terms and conditions of your loan. Please read this very carefully. If you have any questions – just ask us. As soon as you have signed all the necessary documents and have sent them back to the lender they can arrange your settlement.
STEP 9: SETTLEMENT
Now the finish line is in sight. It usually takes 6 to 8 weeks from when you paid your deposit and exchanged contracts for settlement to be finalised.At this point the property is officially yours. So send out the invitations for your house warming party!