Now that you are aware of the common mistakes one can make in the process of buying a house, you have a good reason why you want to get a property and you have clean up your finances , below is the road I took to get to my mansion.
- Get a pre- approval from your bank or a prospective bank so that you can get an idea of how much you can qualify for. This is important if you are not cash buyer because it will guide to the range of prices you should be looking at. Bear in mind banks do charge for the pre-approval letters and they have an expiry period so only get it when you are serious that you will need to use it. If you just want to get a rough estimate, you can use the online calculators.
- Identify the property that you would like and decide whether or not it will be a private sale, or a sale through an agent. This is important as in a private sale, you might appoint your own lawyers to handle the sale whereas with agents, they already have registered lawyers that deal with their transactions.
- Inspect the potential property before signing any sale agreement. The signed sale agreement will not transfer the house in your name, its just an initial agreement to take to the bank. ( You can still walk away from this with or without any penalty).
- The bank will then finalize the loan agreement. At this point in time, you will be required to get the home valuation done, pay bank fees, get life cover and home insurance. Once all that is place, the document will be forwarded to the lawyers.
- Once the lawyers fees are settled, the lawyers will then lodge property in the deeds office for the home and the bond to be transferred to the new owner.
- Once that has been registered, your bond will then start accruing interest and at end of the month, your first installments will start deducting.
This process will differ depending on the facts and circumstances. Your journey may not be exactly the same as mine but I hope that helps.
- If you can save your own bank fees and lawyers fees, please do that.
- If you are a first time buyer, you do not have to put up any deposit.
- Do not buy an over valued property, it will take time for your property to appreciate in value compared to the rate at which your bond amount will be increasing.
- If you are getting married in a few months or a year, consider your long term plans. will you have kids, will there be enough rooms in the house, is there a place for expansion?
Otherwise , have fun house hunting 🙂