10 Steps To Buying a Home – Part Three (Final)
Welcome to part three of our blog series on the 10 Steps To Buying A Home.
In part three of the 10 Steps To Buying A Home blog series we take a look at :
- Arranging inspections
- Unconditional Contracts
- Signing mortgage documents
- Payment and settlement
7 Arrange inspections
As the seller won’t provide you with 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 include the detection of termites and other timber destroying pests.
Also check with the local council and the 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 Unconditional contracts
Once your finance has been unconditionally approved, the building and pest reports are satisfactory to you as the buyer; the contract will then become unconditional.
At this point you are bound to fulfill the contract and proceed to settlement. It generally takes between 4-6 weeks from unconditional contract until settlement (depends on your contract and your state/territory).
9 Sign mortgage documents
Shortly after your loan approval, your lender will prepare their mortgage documents and loan agreements and forward to you or your solicitor to sign.
Once the lender has received the fully executed mortgage documents they can then prepare your loan for settlement.
Generally at this time, payment arrangements, direct debit structures and new account information are finalised.
10 Pay and 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.
The keys are yours – congratulations!
* The process of buying a house will differ depending on whether the house is sold by private treaty or at auction. Rules may also vary in each state or territory.
The ten steps to buying a home form part of our helpful Home Buyers Guide, which can be downloaded for free from the Urban Money website.