LOOKING FOR A HOUSE TO BUY, FOUND ONE, MADE AN OFFER & IT WAS ACCEPTED, SO WHAT’S NEXT?

Posted by Henry | BUYING PROPERTY,HOME LOANS,HOME OWNERSHIP,REAL ESTATE PROPERTY | Monday 28 October 2013 9:35 am

SO YOU HAVE SOUGHT A HOUSE, MADE AN OFFER & IT WAS ACCEPTED-WHAT NOW?

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You found the right house for you, made an offer and were successful- Congratulations! You’re almost there, but before you can call the place yours, you need to get all that paper work right. Have a read here to find out what the next steps are after your successful offer.

Contracts

The selling agent will provide the contract of sale to all interested parties. Once you agree to purchase the home, you will need to provide a copy of the contract of sale to your lender. It’s best to get your solicitor or conveyancer to check over the contract of sale before signing, so be organised if you are planning to purchase via an auction.

State government laws govern property sales in Australia, so check with your local authority to understand any specifics to your locality where cooling off periods and other stipulations are concerned.

Home loan application

Once your contract of sale is completed it’s time to finalise your home loan application. It pays to research a variety of home loans along the way and get a handle on the various product features that might suit your life stage and the longer term plans you have for the house.

Settlement

The most common question asked is, “How long is settlement?”. The time that it takes for your property to settle, and for your loan to be drawn down can vary, but the usual terms include 30, 60, 90 or 120 days. In that time, your bank works with your conveyancer/solicitor (which you have nominated) to get all your paper work ready in time for settlement day.

Settlement day usually involves a face to face meeting between the seller’s solicitor/conveyancer, the seller’s bank representative and the purchaser’s solicitor/conveyancer and bank representative. The meeting will usually take place at the vendor’s bank or solicitor’s office or wherever the vendor’s solicitor chooses.

During the meeting, all documents, including Title, Transfer of Land and other documents will be reviewed by all parties. An exchange of funds is then completed subject to all parties checklists being ticked and all documentation being approved. Your bank will supply cheques for the purchase price (less the deposit you have already paid).

The title is then held by your bank and your loan is drawn down on the day of settlement. Most lenders require that direct debits are then set up, ready for your first mortgage payment. The first payment is usually due a month after your loan is drawn.

Once settlement is confirmed, all you need to do is collect the keys from your real estate agent and your house is finally yours!

LARGE RECTANGLE

Henry Sapiecha

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