First home buying 123
The process of buying your first home can be quite daunting so Craig Pope Mortgages & Insurance will help you every step of the way.
1. Obtain a Pre-Approval from Craig Pope Mortgages & Insurance – this is normally free and will put you in a stronger negotiating position!
2. Search the internet and property magazines to get a feel for property prices in certain areas that are within budget. You can use Quotable Value E-Valuers (approx $40) to get a feel for the value on any property you are keen on. Trademe, Realestate and Open2view tend to be the most popular sites.
3. Determine how much you are happy to spend within your pre approval budget – it may be less than pre approval amount. We work through the options with you and you can email Craig 7 days and nights with questions.
4. Place home purchase offer by signing a sale & purchase agreement coordinated by the agent (or sellers lawyer if private sale). Both seller and purchaser must agree on terms of the sale. Put your conditions into the offer for example: subject to arranging satisfactory finance within minimum 5 working days, subject to builders report, title search, LIM report, subject to valuation etc. Private sales usually require a registered valuation for the bank.
5. Once offer is accepted (it may have been counter offered at a higher price), start working on confirming the conditions within the days stated eg book house inspection, valuer etc. The agent will fax/email the sale & purchase agreement to your lawyer and mortgage broker (us!). We will help you through this process!
6. Finance date/Unconditional/Confirmation date – date all conditions must be met. It’s possible this date could be extended and price/terms renegotiated. Once all conditions are satisfied, the offer goes “unconditional” meaning the purchaser is now legally bound to purchase the property. Deposit is paid to the agent.
7. Lock in interest rate (depends on your individual plans discussed with broker) and structure. Bank account set up with lender and mortgage documents are sent to your solicitor. You sign documents with your solicitor. Arrange insurance insuring all risk is covered.
8. Do a pre settlement inspection a day or two before settlement
9. Transfer of ownership happens on settlement date, keys are handed over to the buyer. Solicitors handle the transfer of funds.
Building a new home usually requires at least 10-20% deposit and a build contract with a qualified builder/company. Banks prefer a fixed price contract and a valuation of the section, and a completed value is required.
For more information or to discuss your options please contact us