A Step By Step Guide For First Home Buyers

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A Step By Step Guide For First Time Home Buyers

Buying your first home can be quite an overwhelming experience. To help ease the process, we have developed a step by step guide for first home buyers so you know just what to expect each step of the way:

Step 1 – Pre-approved Loan

With the confidence to make a calculated offer, knowing how much you have for the deposit on your property of choice is essential.

Step 2 – Right Home, Right Location

Researching your chosen suburb by checking all advertised listings in newspaper, the internet and real estate agents will allow you to know the prices of comparable properties. By visiting open houses and attending auctions, you can be more informed of the realistic value of a property, and if it fits your families growing needs.

Step 3 – Making an Offer

For properties sold by private treaty, you will need to make an offer to the real estate agent. Organise for your conveyancer/legal representative to check the contract of sale once obtained.

Properties being auctioned are frequently open to offers prior to the auction date. However, if sold at auction you will usually be required to pay the deposit of 10% immediately. For an auctioned property, the contract is unconditional and no cooling off period applies. Make sure your conveyancer/legal representative has checked the contract and organised pest and building inspections before bidding at an auction.

Step 4 – Legal Representative/Conveyancer

The real estate agent will provide the copy of the contract for sale, which must then be given to your conveyancer for advice and checking. Your cooling off rights will be advised (these vary from state to state). Once signed by both parties, the contracts are legally binding. Indicated on the contract will be when the deposit must be paid. If no pest and building inspections have been carried out, it is advisable that they are ordered by your representative.

Step 5 – Final Loan Approval

We will organise for all loan documents for the balance of the purchase price to be prepared and signed.

Step 6 – Insurance

You will be required to organise building insurance by your lender.

Step 7 – Final Inspections

Just prior to the settlement date, arrange for a final inspection with the real estate agent. Ensure all inclusions on the contract for the sale are in working order. Check light switches, power points, air conditioners, exhaust fans, hot water, swimming pool equipment and security systems and request copies of all manuals for stoves, dishwashers, etc.

Step 8 – Settlement

Your conveyancer will attend to settlement. It is on this day that the balance of the purchase price is paid to the vendor. Stamp duty and lenders mortgage insurance (if applicable) will also have to be paid. You can collect the keys for your new home from the real estate agent once settlement has been advised.

If something goes wrong…

If you have signed a contract to buy a house, it may be a costly exercise to withdraw, even if you have not reached a settlement. If the cooling off period has passed, the contract is legally binding. To get out of the contract, you are potentially liable to pay compensation to the vendor. This is usually based on the amount it would take to re-sell the house, including any loss on the subsequent sale. Remember to read your contract carefully to be fully aware of the consequences of defaulting on the contract. If you do not wish to proceed with a contract, seek independent legal advice as soon as possible.

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At Alchemy Lifestyle Group, we have a wide range of specialist lenders that can help you achieve your financial goals.