Solid Preparation And Knowledge Will Help You Buy
The House of Your Dreams.
Steps for first home buyers
Step 1: Get pre-approval
Find out what you can afford and review the loans available in the market. Take the time to budget and work out what is right for you.
Step 2: Find a home
The crucial first stage on the road to home ownership is being aware of exactly what you can afford to buy. Your lender will offer pre-purchase approval so that you know where you stand financially from the beginning.
Step 3: Get loan approval
Once you have identified a property you would like to buy, the lender will then be able to formally approve a loan much more quickly thanks to your proactive approach. It is highly recommended to get a pest and building inspection.
Step 4: Arrange a contract and secure a solicitor
Depending on the state your new property is located in, you may come across a contract that includes a “subject to…” section, with factors such as finance approval and satisfactory pest inspection often listed as prerequisites to a sale. The property cannot be sold to another party for the period of time stipulated in the contract. An alternative approach to consider is buying at auction. This is a scenario that may seem intimidating to many first time property buyers, but if you do your research it can be a viable strategy.
Additional fees for home owners
The most significant single fee you are likely to face is state government stamp duty, if it is applicable in your location.
Pest and building inspections are not obligatory, but they are highly recommended for avoiding the possibility of buying a home with existing problems that could be very expensive to rectify later. Your solicitor may advise that you obtain a new survey of the property, while there are also a number or searches and enquiries they will need to charge you for.
There are generally certain legal and loan establishment costs that your lending body will pass onto you, so it is advisable to ask about such fees in advance. The cost of moving home should also be calculated into your financial planning.
The real estate agent’s costs are incurred by the vendor, so this is one aspect of the sale you will not need to worry about. Consult the expert advice of a solicitor or Liam Annesley for more comprehensive details regarding your personal situation.