Buying a home is an exciting time for most people. It's often said to be one of the biggest financial decisions people will make in their lifetime. For the majority, buying a home also means getting a home loan to fund the purchase, and it’s bringing together these two very important goals that we’ll be covering today.
It’s easy to get distracted in the process and only focus on the immediate goal of getting the home loan approved.
Now, whilst that’s vitally important, you also need to focus on getting the right loan that meets your needs, and fits in with your long term financial goals.
First Home Buyers form a large part of the property market, and according to Owen Kirk Finance Broker there’s a range of government incentives and fee discounts available to them including the First Home Owners Grant and various Stamp Duty and property transfer fee reductions. It’s important to cover these areas and we’ll focus on First Home Buyers in a future blog.
OK, getting back to the home loan process there are a few key steps to remember.
Before embarking on your journey to find that dream home, it’s important to know what your borrowing capacity may be considering income, expenses, and personal circumstances. It would be devastating to go out and find the perfect home, get all excited, and then find out you don’t qualify for the loan amount needed.
So, Step 1 is making an appointment with your professional Finance Broker, such as Owen Kirk of Hewcorp Finance to determine your borrowing capacity and map out a plan towards home ownership.
Step 2 is to bring along evidence of your current income, deposit, debts, and other expenses to the meeting so your Broker can calculate your borrowing capacity and potential repayments. This is an important step. Borrowing capacity is one thing, comfort level is another! You need to work out and discuss a purchase price range that you are comfortable with and can afford to repay.
Step 3 involves exploring a Pre-Approval application if your borrowing capacity is sufficient, and you feel ready to take the step towards home ownership. Your professional Finance Broker will research and present lender and loan product options based on your preferences, product availability, interest rates and special offers. After deciding on lender and loan product, your finance professional will prepare the application, submit it to the lender, and negotiate with them regarding the approval. Once the Pre-Approval is in place you will have a defined period, usually 30-90 days to find a property.
Step 4 – Whether you have a pre-approval in place or simply go out and find a property to purchase, once you’ve made the decision to buy and have negotiated the price and other conditions, it’s time to sign a contract. The buyer should liaise with a solicitor who specialises in property transactions (conveyancing) and the real estate agent regarding the preparation of the purchase contract.
It’s important to note at this point that the purchase process (in terms of contracts) varies considerably between the States in Australia. In Queensland, home buyers sign a purchase contract at the beginning of the process. This differs from some of the states where the contract is signed on the day of settlement, so it’s important to get things right.
The contract in Queensland outlines the property details, the buyer/seller details, as well as the price and other relevant information.
The finance and settlement dates are two of the key conditions, and it’s important to ensure there is enough time for the solicitor, Hewcorp Finance as your Finance Professional, and the lender to complete all the necessary steps before the approval and settlement dates. Your solicitor will advise you on these issues.
Once the contract is signed, your Finance Professional will submit a formal loan application to the selected lender for approval, or apply to have any Pre-Approval that’s in place converted to a full approval. The approval of the loan will trigger loan contracts being sent to you for signing. Your Finance Professional can provide you with any clarifying information relating to the loan product and features, and you should also seek advice from your solicitor regarding the loan contract.
With the signing of the loan contract and its return to the lender, your solicitor, Finance Professional and lender will work towards the settlement day when funds are exchanged and ownership transfers to you!
The process of buying a home and getting a home loan can be quite complex. It’s vitally important you have professionals working for you to make the process as seamless as possible, and to deliver a positive outcome.
The Hewcorp Finance team delivers real service, peace of mind and a level of professionalism you can count on.
Hewcorp Finance provides professional home, car, truck, caravan, marine and asset finance services to customers in Redland Bay, Bayside suburbs, and the greater Brisbane region.
You can follow Owen at https://www.linkedin.com/in/owensjkirk or view details at www.hewcorpfinance.com.au and LIKE us on Facebook @ https://www.facebook.com/hewcorpfinance/
Written and Published by www.presentprofessionally.com.au
Peace of mind and the right finance solutions to Redland Bay and Bayside Brisbane since 2005.