How the home buying process works

Author: ME

Published at: 6/21/2016 3:28:58 PM

 

How The Home Buying Process Works

 

Take a step by step look at what’s involved in buying your first home.

We’ve broken the home buying process down into bite-sized chunks to give you a clear overview of what to expect. Use our flowchart to mark off (and celebrate!) each milestone of your home-buying journey.

 

Step 1 - Draft a buying budget

This lets you know how much you need to save to reach your deposit goal and what you can afford in regular repayments.

 

Step 2 – Create a short list of areas/properties you’re interested in

It pays to be flexible – your first home isn’t always your dream home, but it is an important step on the property ladder.

 

Step 3 – Determine your borrowing limit

Your borrowing limit is important – it will shape where/what you can afford to buy.

Our Borrowing Calculator can give you an idea of how much you can afford to borrow but there’s no substitute for speaking with your ME Mobile Bank Manager.

 

Step 4 - Obtain approval in principal

Approval in principal means you meet the lending criteria of your chosen provider pending your choice of appropriate home. The beauty of approval in principal is that you have more bargaining power in price negotiations and you can bid with confidence at auction. The best part? Approval in principal comes at no cost to you. You pay nothing until your loan has settled.

 

Step 5 - Start house hunting

Your ideal home is just waiting to be found. Research the market, know what’s a fair price for your area, and when you discover a property you’d like to buy, ask for a copy of the contract and send it to your solicitor/conveyancer for review. It’s a good idea to arrange a pest/building inspection or strata report for a unit. Contact your ME Mobile Bank Manager to formalise your loan.

 

Step 6 - Make an offer or attend an auction

Keep your borrowing limit in mind when it comes to price negotiations to avoid overstepping your buying budget.

 

Step 7 – Offer accepted – exchange contracts

Here’s the exciting part! The vendor (seller) has accepted your offer.

 

From here, you and the vendor will each sign a sale contract. The contracts are then handed over (exchanged) to your respective solicitors/conveyancers, and you will need to pay a deposit.  Your solicitor will contact ME to discuss a settlement date.

 

At this stage you have a financial interest in the property.   It’s wise to take out building insurance at this step and if you take out a ME home loan it is a condition of the contract.

 

Step 8 - Cooling off period.

Depending on what state you live in there tends to be a cooling off period to change your mind about the purchase though if you back out now you could lose part of your deposit. There is no cooling off period if you have purchased at auction.

 

Step 9 - Settlement

It usually takes 6-8 weeks following the exchange of contracts for the property purchase to be finalised (or ‘settled’). However the exact length of time will be what you specified in your contract.  Your solicitor/conveyancer will work behind the scenes to get the documentation ready to transfer the title of the property into your name at settlement, and your ME Mobile Bank Manager will be busy getting your loan ready. We’ll stay in touch to let you know how things are progressing.

 

At this point you need to pay stamp duty on your home and finalise legal fees plus any adjustments for rates and utilities.

 

Step 10 – You’re a home owner!

Don’t forget to plan your housewarming – your friends and family will want to share the excitement of your first home!

 

We’re here to help

Your ME Mobile Bank Manager is here to help you enjoy a hassle-free home buying process. Contact us on 13 15 63 if there is anything you are unsure of or take a look at our FAQs.

 

Want to know more? - find out about how much deposit you'll need here.

 

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