Home Loans in Warners Bay

1. Know the market:

Do your homework and research the area you are buying into by browsing newspaper and Internet property listings and speaking to local real estate agents. Attend plenty of property viewings and auctions, each time asking yourself: Does it suit my needs? What are its faults and features? How does its price compare with other properties seen? The more informed your decision, the better chance the property you buy is the right one in terms of price, location, value, size and lifestyle.

2.  Do your sums:

Once you have an idea of the property market, you need to know what you can afford to spend and repay. Your borrowing power is determined by your income and financial commitments, as well as your current savings and credit history. East Coast Finance can help you work out how much you can borrow and what type of loan will suit your budget and lifestyle. We can advise you of the true costs involved in taking out a mortgage (e.g., stamp duty, taxes, legal costs and insurance), and how to build in a buffer to interest rate calculations so that you’re prepared should rates rise. To save leg work, we can help you apply for the First Homeowners Grant and check your eligibility for stamp duty discounts.

5.  Start the paperwork:

Contact East Coast Finance with the details of the property you want to buy so we can get the ball rolling on obtaining formal loan approval. As part of this process, the lender may organise an independent valuation of the property to make sure the amount you’re offering is reasonable. You’ll need to provide your East Coast Finance broker with a range of documentation. Around this time, the seller will make the Contract of Sale available to your solicitor or conveyancer for review. The contract is a legal document that outlines your offer, the date of settlement and any conditions that you must meet before the sale goes ahead (e.g., subject to bank finance). Take the opportunity to do another inspection on the property, checking all fittings and fixtures are in place.

6.  Organise insurance:

Your lender usually requires proof of building insurance as part of the home loan process. We can help arrange this. The insurance can take effect from the settlement date or even before settlement if you are unaware that the seller has a current insurance policy. If you’re purchasing a Strata Title unit, villa or townhouse, you’ll need to obtain a Certificate of Currency from the body corporate insurer.

7.  Arrange inspections:

As the seller won’t provide any guarantees about the structural soundness of the home, it is wise to have a building inspection undertaken before you exchange contracts. You should also have the property inspected for pests because the building inspection doesn’t cover termite detection and other timber destroying pests. Also, check with the local council and state government roads and traffic authority about whether there are any future developments planned that may affect your home. If you’re buying a Strata Title property, arrange for an inspection of the books and records of the owner’s corporation.

8.  Exchange contracts:

A property sale isn’t signed, sealed, and delivered until the exchange of contracts. Once you and the vendor have both signed the contract and the purchaser has paid the deposit, the agreement is legally binding. It generally takes four to twelve weeks from the exchange of contracts until settlement (depends on your contract and your state/territory).

9.  Cool-off: 

If you exchange contracts in a private treaty sale, some States of Australia entitle you to a legal cooling-off period, which allows you to withdraw from the contract to buy the property (the length of the cooling-off period varies from state to state). If you are certain the property is perfect for you, you can waive the cooling-off period with the agreement of the seller. Your solicitor or conveyancer will advise you through this process.

10.  Pay & settle:

Stamp duty, which is calculated on the purchase price of the property, must be paid at settlement. The First Home Buyers scheme provides full or partial exemption on duty to first home buyers – we can advise you of your eligibility. At settlement, the balance of the purchase price is paid to the seller, and you become the legal owner of the property.