Real Estate

10 Most Common Steps to Take In the House Buying Process

For many people owning their own home is a dream that features high on their goal list. The truth is it isn’t always as easy as some people would like you to believe. Not only does it involve a considerable amount of effort to find the right home, but you need to have a significant amount of cash available as well.

For a first-time homebuyer, using the services of a real estate agent Rowville residents recommend is essential. Not only will a real estate agent guide you in the right direction, but they’ll be able to assist you with the simplest way of getting through the house buying process.

House Buying Process

Buy a House in Australia in a Few Basic Steps

It’s easier to start the home-buying process when you have an idea of where to start. We’ve simplified the home buying process into 10 easy steps that will have you moving into your dream house sooner than you think!

Determine a Reasonable Budget

The most important step in the home-buying process is to establish how much you can afford to pay for a house. This takes a serious audit of your financial affairs. Draw up a list of all the expenses you currently have as well as any that you’re planning for the years ahead.

It’s important to consider your and your partners income, expenses and potential future commitments to establish how much money you’ll have left for monthly repayment. If you’re planning to grow your family, factor an estimate of the cost of raising a child into your calculations as well.

Establish Your Loan Capacity

When you have an estimated calculation of what you can devote to a possible mortgage repayment, the next step will be to establish how much you can borrow from an accredited lender. This amount could vary from lender to lender, and it would be a good idea to review a few different options.

If this part of the process seems daunting, you could always enlist the help of a mortgage broker. They will easily be able to give you an idea of lending options based on your income, assets, dependents, and debts.

Familiarise Yourself with Home Loan Options

Educating yourself with the different home loan options on the market is crucial. It’s also essential to be aware of the different interest rates as well as terms on offer. Some of the loan options on offer include the following.

  • Fixed loan – Gives you the security of a fixed repayment amount.
  • Redraw facilities – These are popular because they allow the lender to repay more than the average minimum mortgage repayment. Users can then withdraw the surplus amounts.
  • All-in-one loan – This type of loan allows you to put any savings or surplus amounts into these accounts. In turn, this offsets the loan principal and reduces your interest rate.

Research Available Market Deals

Obviously, you’d want the best deal in the marketplace. Research online offers, newspaper ads and any referrals from friends and family. If you have already enlisted the services of an estate agent, you could ask them for referrals as well.

Contact lenders directly and establish what they have on offer. Here you’re looking for options that include zero establishment fees, lower interest rates or any other value-adds.

Obtain Approval from Your Chosen Lender

Procedures for getting your home loan approved may vary. You’ll most likely be issued with a “home loan guarantee certificate” which simply means your loan will be approved when you find the property you want to purchase. These approvals are typically valid for 6 – 12 months.

Find Your Home

Decide what area you would like to live in and start hunting for your forever home. Your real estate agent will be able to provide you with a list of available homes in the area. Do your own research online as well as checking in newspapers.

Request Building Inspections

When you find a home, you’re interested in, enlist the services of certified contractors to do building inspections to ensure that the house is in order. This is particularly important when you’re buying an older house.

Inspections to consider include the following.

  • Building inspections.
  • Electrical inspections.
  • Land or property survey.
  • Pest inspections (termite inspections are essential as they affect the structure of your home).

Make an Offer

Approach price negotiations with some flexibility. Be prepared to up your offer to prevent losing your home because you were outbid by a few hundred dollars!

The Legal Process

Once you have found your property, your attorney will set the ball in motion. Ensure your contract is straightforward and has no hidden clauses which could result in issues down the line. This process might take a few weeks to double-check, so you’ll have to be patient here.

Enjoy Settlement Day

Settlement day is the day you meet with the seller to exchange your cheque for the title of ownership. At this point, you should arrange insurance and notify all relevant departments of the change of ownership!

Final Thought

By following these basic steps, you’ll soon be well on your way to owning your dream home! Don’t be hesitant to enlist the services of experts such as brokers, estate agents and real estate attorneys. You’ll be ticking the home-owning block off your goal list before you know it!

About the author

Reena Bansal

Reena Bansal has done Bachelor in Computer Science from University of Delhi. She is a technology lover, plays chess, music lover, innovative, likes to express her views via blog and is a fitness freak. She has been contributed a number of great articles to the internet.