Buying property can seem like an overwhelming process at times but with a step by step strategy, the road to new home ownership will become a lot less complicated.
Taking one task at a time helps you to organise your documents, your time and your thoughts – taking the pressure off.
Step one – Your home loan appointment
The first step towards getting into a place you can call your own is the home loan appointment. Here you will find out all of the loan options available and decide on the one that is most suitable for you. You will then fill out the application material with the assistance of your adviser. Now is the time to ask as many questions as possible to get a clear idea of what is to come.
Step two – Your home loan application
Here is the time to gather all of your supporting materials for your application. Your adviser will then professionally package it and send it to your chosen lender – often electronically. The lender will then perform credit checks, perhaps arrange a valuation of your property and organise mortgage insurance.
Step three – Home loan approval
Your lender should now be in a position to approve your application – your adviser will inform you of the outcome immediately. This is the time to organise building insurance as you will need it for the settlement.
Step four – Home loan offer
Your lender will send you a loan offer for you to sign and return. The offer is a contract and outlines the terms and conditions of the loan – including interest rate, term and range of possible fees. Now is the time you may wish to contact your adviser to ensure you know exactly what you are signing and what to expect for the term of your mortgage.
Step five – Mortgage documents
This is the time your lender will send you or your conveyancer your mortgage documents to be signed and returned. These documents include the lender’s standard terms and conditions as well as the legal document giving the lender security over the property. Now is the time to ask any lingering questions about the agreement.
Step six – Home loan settlement
The big day! Your lender will liaise with your conveyancer to arrange for settlement to take place. The home loan will be ‘drawn down’ and the property will transfer into your ownership. Now is the time to celebrate!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.