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Are you thinking of buying a house? If so, you’ll want to read this blog post. We will outline 10 steps to help make the process as smooth as possible for first-time homebuyers. Buying a house can be daunting, but following these steps, you’re on your way to homeownership!
1. Get pre-approved for a mortgage: You’ll want to do this before you start looking at houses. This will give you an idea of how much house you can afford and also let sellers know that you’re serious about buying.
Mortgage pre-approval is when a lender gives you a letter stating the amount they are willing to lend you, based on an assessment of your financial history.
2. Know your wants and needs: It’s important to be aware of what you’re looking for in a home. Make a list of must-haves and things that would be nice to have but you can live without. This will help narrow down your search when you start looking at houses.
When considering what you want in a home, think about things like the size of the home, the number of bedrooms and bathrooms, the type of kitchen, and so on.
3. Get your finances in order: In addition to getting pre-approved for a mortgage, you’ll want to ensure your other financial obligations are in order. This includes things like outstanding debt, credit score, and saving for a down payment.
Your credit score is important because it’s one of the factors lenders will consider when approving you for a mortgage. Outstanding debt can also affect your ability to get a mortgage, as well as the interest rate you’ll be offered.
Saving for a down payment is important because most lenders will require one. The size of the down payment will depend on the lender, but it’s typically around 20% of the purchase price of the home.
If you’re not sure where to start when it comes to your finances, we recommend talking to a financial advisor. They can help you get on the right track and make a plan for achieving your homeownership goals.
4. Hire a conveyancer: Once you’ve found the perfect home, it’s time to start the legal process of buying it. This is where a conveyancer in Adelaide comes in. They will help with all the paperwork and ensure everything is for the sale to go through.
The role of a conveyancer is to prepare and lodges transfer documents, conduct searches, calculate stamp duty, and so on.
Conveyancing can be done by a lawyer or a licensed conveyancer. We recommend talking to a few different professionals to find the right fit for you.
The cost of hiring a conveyancer will vary, so be sure to get an estimate before making your decision.
5. Make an offer: Once you’ve found the right house and sorted out your finances, it’s time to make an offer. Your conveyancer will help you with this and negotiate on your behalf if necessary.
The purchase price isn’t the only thing that goes into an offer. You’ll also need to consider things like the settlement period (the length of time between when the contract is signed and when you take ownership of the property) and any conditions that need to be met.
Your conveyancer will help you put together a strong offer that gives you the best chance of having your offer accepted.
When making an offer, it’s important to know that the seller may counteroffer. This means they could come back with a higher price, a shorter settlement period, or different conditions.
If this happens, you’ll need to decide whether to accept the counteroffer, make a new offer, or walk away from the sale.
Remember, there’s no right or wrong answer here. It all comes down to what you’re willing to accept and what’s best for your situation.
6. Get a building and pest inspection: Once your offer has been accepted, it’s time to get a building and pest inspection. This is important because it will help you identify any potential problems with the property.
The inspector will look for things like termites, mould, structural damage, and so on. If they find anything of concern, they’ll provide a report detailing their findings.
This report will help you decide whether to proceed with the sale or walk away. If you do decide to proceed, it may also give you negotiating power when it comes to the purchase price.
7. Apply for a loan: If you’re planning to finance your purchase with a loan, this is the next step. You’ll need to compare different loans and find one that suits your needs.
When comparing loans, there are a few things you’ll want to look at, such as the interest rate, fees, repayment options, and so on.
We recommend talking to a few different lenders and getting pre-approval for your loan before making an offer on a property. This will help you know how much you can borrow and give you more negotiating power regarding the purchase price.
8. Exchange contracts: Once you’ve found the right loan and had your offer accepted, it’s time to exchange contracts. This is a legal agreement between you and the seller that binds you to the sale.
It’s important to note that once you exchange contracts, you’re committed to buying the property. So, if something goes wrong, you could lose your deposit.
Before exchanging contracts, be sure to read the contract carefully and understand all the terms and conditions. If there’s anything you’re unsure about, be sure to ask your conveyancer for clarification.
Once you’re happy with the contract, both you and the seller will sign it and exchange copies. At this point, you’ll also pay the deposit.
9. Attend the settlement: The settlement is when the sale is finalised and you take ownership of the property. This usually happens around six to eight weeks after exchanging contracts.
At settlement, your conveyancer will organise for the balance of the purchase price to be paid to the seller (or their lawyer/conveyancer). They’ll also transfer the title of the property into your name and organise for any other necessary paperwork to be completed.
10. Move in and enjoy your new home: Once settlement is complete, you’ll be able to move into your new home! This is an exciting time, but it’s also important to remember that there’s still some work to be done.
You’ll need to organise things like utilities, insurance, and so on. But once that’s all sorted, you can sit back, relax, and enjoy your new home.
We hope this guide has been helpful. Buying a house is a big decision, but with the right preparation, it can be an exciting and enjoyable experience. Good luck!