6 Steps to purchasing a house & how mortgage brokers can help (Part 2)
Step Four: Finding a Home Loan
When searching for a home loan, it is important to think of what features you want offered. Do you want a fixed rate of repayment which gives you a stable interest rate or a variable rate which could help you pay less if interest rates fall in the future? This repayment is a mortgage payment which is basically repaying the money you were lent (home loan) with interest and the length of time you will take to repay it. Keep in mind the interest rates and always compare home loan rates to find out which suits you the best. This a mortgage broker’s primary value proposition; detailed knowledge across multiple banks and other money-lending options enables them to find home loan solutions that are tailored precisely to your needs and financial situation.
Step Five: Making an Offer
Now it’s time to make an offer and negotiate the sale of the property, which will be through an auction or a private treaty. Auctions are basically what you would assume, it is the process of buying the house whereby a group of people can bid for the property and the property goes to the highest bidder. Whereas a private treaty is a sale made by a private seller who has an asking price where you in return can give an offer for that price. Remember that house inspections happen during this time. Things to keep in mind are:
Hiring buyer advocates to help with the auctioning process
Real estate agents will help you negotiate fair offers during a private sale.
You will also need to view and sign a contract of sale where a lawyer, conveyancer, or solicitor will help you through the process. Contracts of sale do not mean you own the property yet!
Step Six: The Buying Process & Settlement
The sixth and final step is to follow the buying process and the settlement of the property. Here there will also be an exchange of contracts, one for you the buyer and one for the seller of the property. Once this is done you will have to wait for the settlement date! The settlement date is the date that funds are transferred and you take legal and full ownership of the property. This can take up to 6 weeks or more and there are some things you will have to complete before this happens. You will have to make sure you have signed your mortgage documents and relevant insurances as well as pay for the stamp duty. Stamp duty is basically a government tax levied from single property purchases, you can figure out how much this costs with a Stamp duty calculator. Once all these steps have been completed, congratulations you are now the proud owner of a new home!
Information Disclaimer:
Any advice provided is general and does not take into account individual objectives, financial situation and needs. All individuals should consider whether the advice is suitable for them and their personal circumstances.
