Steps Involved when Buying a House

Buying a house or investment property is probably the largest financial transaction you will ever make, so the the more informed you are, the more comfortable you will feel about the purchase.

Step 1 - Obtain Loan Pre approval

• The loan pre approval must be subject only to a satisfactory valuation, contract of sale, and LMI approval.
  • Pre approvals are generally valid for 3 months before new income docs need to be submitted, and 6 months before a whole new application needs to be submitted.
• FHOG form needs to be filled out and signed (except for property details)
• If needed, a Deposit Bond Form can be filled out (not sent to Deposit Power until unconditional loan approval is received from bank).

Step 2 - Finding a property

• Look for a property to purchase

Step 3 - Property found

• BEFORE making an offer, the contract of sale & section 32 needs to be sighted and given 'ok' by either a solicitor or conveyancer (preferably a solicitor).
• If applicable, confirm with vendor that a deposit bond will be an acceptable form of deposit, or that, if applicable, less than a 10% deposit is ok.

Private Sale Step 4 - Offer Make an offer to vendor (signed subject to finance approval and any other clauses the solicitor has stated). Finance clause must end at least 10 working days after contract is signed. You may be required to pay a nominal amount to real estate agent as good will (not always required and don't offer it, wait to be asked)	Auction Step 4 - At Auction Need to have deposit on hand to give to vendor. DO NOT over bid. Must bid up to loan amount, not over.
Step 5 - Offer Accepted 2 originals - to be retained - one to vendor & one to purchaser Give a copy to Broker Give a copy to solicitor	Step 5 - Bid Accepted Pay deposit & sign contract of sale. 2 originals - to be retained - one to vendor & one to purchaser Give a copy to Broker Give a copy to solicitor

Step 6 - Property Insurance

• Organise building insurance, noting relevant financier

Step 7 - Finalising loan - process

1. Contract of Sale sent to bank (by broker)
2. Valuation - may occur, but not all the time
3. Unconditional approval - must be obtained before expiry date of finance clause
4. Loan docs are to be signed (with broker)
5. Docs are sent back to bank to be certified
6. Solicitor books in settlement with bank
7. Settlement