10 Steps Involved in Purchasing Property

 
The process of purchasing property may seem overwhelming, but it needn’t be that way. Professionals take care of the paperwork, so the hardest part for you is finding the property. By understanding the steps involved and reading our Property Investment Tips, you will feel more confident and it will ease the panic so often associated with the purchasing process.

1. Apply for Pre-Approval of a Loan through Zar Mortgage Brokers.

  • You should always obtain pre-approval for a loan before you make an offer.
  • Pre-approval of your loan will give you an upper hand during negotiations and will speed up the purchasing process.
  • Pre-approval will also allow you to move quickly on potential properties.

2. Find the Property 

  • Be sure to read Property Investment Tips for more information on finding property and making sure it’s a good deal.
  • Look, don’t leap! Do as much research as you can before making an offer.
  • Contact Zar Mortgage Brokers for a Free Suburb Report to see what similar properties have sold for in the area. This information can save you from offering an above-market price for the property
  • Remember: The Real Estate Agent works for the Seller and not for you. They may act like they are on your side, but they’re not. So, never solely rely on what the selling agent tells you. It’s their job to get as much as they can for the Seller.

3. Find an Experienced Solicitor or Conveyancer

  • Before signing any Offer/Contract, have your solicitor/conveyancer review it to make sure it is acceptable.
  • Your Solicitor/Conveyancer will arrange for all necessary Searches, and will also arrange for the Settlement with the Seller’s Solicitor/Conveyancer and the Lender.
  • Your Solicitor should supply you with the final figures required to complete settlement (i.e., how much you need to give them and how much the Bank will take to settlement).
  • Solicitor/Conveyancer fees vary, so make sure you agree on the fee up front.

4. The Real Estate Agent will draw up an Offer for you. Once the Seller accepts/signs your Offer, the Offer then becomes a Contract.

  • Send a copy of the Offer/Contract to your Solicitor/Conveyancer BEFORE signing it.
  • This is your Offer to the Seller, not the Real Estate Agent. Do not let the Agent tell you what you can put in your offer. They must take all offers to the Seller, regardless of what they may say or think.
  • Make the Real Estate Agent put the deposit amount that you want to offer, not the amount that they want. The deposit is only to show the Seller you are serious. The Real Estate Agent would like this deposit to be enough to cover their fees, so they may push for a larger amount.
  • Make sure there is a finance clause of at least 14 days. (Preferably 21 days, as Banks/Financial Institutions sometimes get a little behind.)
  • Ensure there is a Building and Pest Inspection clause of at least 7 days. (Preferably 14 days, so you can cancel the inspections if the loan is declined.)
  • If you are a first home buyer, you should apply for the First Home Owners Grant (FHOG). Zar Mortgage Brokers will apply for FHOG on your behalf if you include the FHOG application with your loan application.
  • If you pull out of the contract during the 5 Day Cooling-Off Period, there will be a penalty. This is normally 0.25% of the Purchase Price (e.g., for a $200,000 purchase, the penalty would be $500).

5. Once the Seller accepts/signs your offer, have the Real Estate Agent fax a copy to Zar Mortgage Brokers.

  • We will forward a copy to the Bank and start arranging a valuation on the property (if required).

6. Arrange for Building and Pest Inspections

  • You should have inspections performed by independent qualified professionals who have insurance.
  • Your Solicitor/Conveyancer will need to know if the results of the inspections are satisfactory before the Building and Pest Inspection Clause has expired (usually 7 days).

7. Arrange for Insurance

  • It is your responsibility to insure the property as soon as the Offer becomes a Contract (e.g., if it burns down whilst under contract, it is your loss).
  • Contact your current Home and Contents Insurance Provider or contact Allianz Insurance, 1300 360 574, for a quote. Please quote Reference Number 1-H7YS to the Allianz Consultant and they will offer you up to 90 days free* Home & Contents Insurance during your settlement period when purchasing, or up to 10%* off an Allianz Home Insurance Policy when refinancing.

8. Zar Mortgage Brokers will advise you and your Solicitor/Conveyancer when your finance has been Unconditionally Approved by the Bank/Financial Institution.

  • This normally takes two weeks from the original application date as the Banks usually need to send a Valuer to the property and receive a valuation report before Unconditionally Approving a loan.

9. Contact your Solicitor/Conveyancer to find out:

  • The time and date that has been set for your settlement.
  • The amount of money you will need to give them to complete the settlement on your property.
  • Where the keys for the property will be after settlement.

10. Move In

  • Enjoy your new home!
  • Tell everyone about Zar Mortgage Brokers.

IMPORTANT NOTES:

  • Your mortgage stamp duty fees and registration charges will not be drawn from your account until about one month after settlement. Many clients are caught out because they don’t leave enough in their account for these charges.
  • If you are making weekly or fortnightly repayments, you must make sure the Bank draws these the week or fortnight after settlement. This is so that a full month has been drawn when your first "monthly" payment comes due. If the Bank does not draw this in time, you may pay default interest penalties. Not a good start to your loan.

*Free Building Insurance Offer Terms and Conditions. This insurance is subject to normal underwriting terms and is subject to your eligibility for insurance cover. Please note that this offer does not provide automatic insurance cover. Your free building insurance cover begins when the insurance policy is activated and terminates on the date shown in the policy schedule. If you are eligible for two or more discounts, the second and any subsequent discounts may be applied to the premium (excluding applicable taxes and government charges) after it has been reduced by previous discounts. If your premium is below the Allianz minimum premium, then the minimum will apply. For full terms and conditions, please visit www.allianz.com.au/AFG_Free_Offer