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buying a home? here's a breakdown of the loan process with mr finance loans

1. Arrange a pre-approved loan

Get ahead of the game. By arranging a pre-approval on your loan you will save yourself time and money.  Firstly by knowing your full borrowing capacity you will avoid wasting time looking at properties that are outside your budget.  Secondly, when you find that property that is “just right” for you, you will put yourself in an extremely strong negotiating position by having a letter of pre-approval in hand.  Of course, even with finance pre-approval, a subject to finance clause is an important protection in any contract of sale.

2. Find your property

When you’re on the hunt for a new property it’s important to make sure you do plenty of homework from researching property prices in the area to potential capital growth and existing or planned infrastructure, such as roads, public transport, schools and shops. If you engage with Team Happy we will be able to assist you with your search and make sure you find out about the most suitable properties to your requirements as soon as they’re on the market or even before!

3. Make an offer and sign a Contract for Sale

When you make an offer on a property you’ll be asked to sign a Contract for Sale. This contract will confirm the selling price as well as any terms and conditions. The total period from signing a Contract of Sale to settlement (when the property becomes legally yours) is usually six to eight weeks. This includes a 21 – 28 day period for formal finance approval. It is important to note that even if you have a pre-approved loan your lender will need to complete a valuation of the property you have chosen before issuing full approval in order to ensure that the property represents realistic market value.  If that valuation is not satisfactory the lender may not give final approval of the loan thus protecting you as the buyer.

4. Pay a deposit

A deposit is required once a Contract of Sale has been signed by both parties. You won’t yet have access to your home loan, so your deposit will need to come from savings or elsewhere.

5. Appoint a Settlement Agent

You will need a Settlement agent, conveyancer or solicitor to act for you to complete the sale, at Brookwood Realty we regularly refer Exclusive Conveyancing and Woodbridge Settlements however we happily work with anyone else you may choose. Your settlement agent should also check all rates and taxes have been paid, check land use and order any relevant searches. On settlement day, the conveyancer will confirm that the correct amount of money has been transferred from your lender to the seller and all fees – such as Stamp Duty, transfer fees etc. are paid, so you can take legal ownership of the property.

6. Move in and enjoy!

You can now call the property your new home, start unpacking boxes and make it your own. There is no better feeling than when all the hard work you’ve undertaken saving, searching and finalising the sale pay off!

Sometimes the best way to get an understanding of home loans, how it all works and how to choose the right one, is to speak to a broker in person. Here at Brookwood Realty we have an in-house broker Troy from Mr Finance Loans who we cannot recommend highly enough. When you sit down with a broker it gives you a chance to ask all the questions you have about finding and choosing a loan, applying for a loan, the approval process, and what happens after that.

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