Without a loan, you may be unable to move forward with your dream of buying a home or investment property. Here is a step-by-step description of getting a loan to fund your property purchase.
SET YOUR BUDGET
You must be absolutely clear about how much you can afford to pay. Besides your income and expenses, keep future needs in mind to make an informed decision.
DETERMINE HOW MUCH YOU MAY BE ABLE TO BORROW
The amount you can borrow will vary from lender to lender. Use online calculators offered by lenders to estimate this amount. Keep in mind that the property price is not the only cost in consideration; factor in the bigger costs like stamp duty and solicitor/conveyancers costs to calculate your total out-of-pocket expenses.
RESEARCH DIFFERENT HOME LOANS
Consider important factors like interest rates and payment terms to find a loan product that meets your unique needs. Also check if you are eligible for First Home Owner Grant. Some of the documents you’ll need to provide when applying for a home loan are:
- Most recent group certificate
- Two most recent pay slips (personal and business tax returns from the previous two years for self-employed borrowers)
- Identification documents equivalent to 100 points
- If you’re building a new home, you must provide:
- A copy of the council-approved plans
- A copy of the builder’s fixed price tender
FIND THE RIGHT PROPERTY
Our Sales Team at Professionals Yarra Valley can assist you to zero in on the perfect property in the Upper Yarra Valley. A home inspection should follow to ensure that you’re buying a quality property.
MAKE AN OFFER
If your private sale offer is accepted and the contract of sale signed, you’ll need to put down a 10 per cent deposit (unless otherwise negotiated) to your real estate agent who will hold it in their trust account, until the sale is finalized. It gives you, the borrower, the legal right to proceed with the property purchase. If the property sale is occurring through an auction, avoid bidding over the maximum price limit you have set. Properties being auctioned have a reserve price, a minimum price that the owner is willing to accept for the property. Upon reaching the reserve price, the property is sold to the highest bidder.
CONVEYANCING
Conveyancing, which is the transfer of property title from the owner to the buyer (new owner) is the next step. A solicitor or conveyancer can charge you a flat or sliding fee which includes title search, clearance certificate and building reports.
SETTLEMENT
This is the last leg of the process where you pay and receive the title of ownership. The change in ownership can be communicated to government departments by your solicitor or conveyancer.
Please note this information is provided as a general guide only and you should make and rely on your own enquiries with your preferred home loan supplier.
