10 Steps To Buying a Home – Part Two ( Making an offer, paperwork and insurance)
Welcome to part two of our blog series on the 10 Steps To Buying A Home.
In part one we looked at knowing the market, doing your sums and getting the tick of approval.
In part two of the 10 Steps To Buying A Home blog series we take a look at :
- Making and offer
- The paperwork
4 Make an offer – sign a contract to purchase
When you have decided on a price that you feel comfortable with and wish to present the vendor with your offer to buy, the real estate agent will ask you to sign a conditional contract for the amount that you are prepared to pay for the property.
At this stage the contract is not binding until the vendor accepts the offer and counter signs the contract of sale. If the vendor doesn’t accept your offer the contract is not binding, however they may counter offer by changing the purchase price amount on the contract for your acceptance.
Once the contract has been signed by both, the real estate agent will ask you for the agreed deposit. Usually the contract will be conditional for 14 days to allow satisfactory finance and also building and pest inspection.
5 Start the paperwork
Contact us 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 for it is reasonable. You will need to provide us with a range of documentation – see ‘what you need’ on page 9 of the Home Buyers Guide (Download this from the Urban Money website).
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 must be met 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
Proof of building insurance is usually required by your lender as part of the home loan process.
We can help arrange this. The insurance can take effect from the date of settlement or even before settlement if you are not aware that the seller has a current insurance policy. Urban Money can assist you to arrange cover immediately.
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.
The 10 Steps To Buying A Home form part of our helpful Home Buyers Guide, which can be downloaded for free from the Urban Money website.
Read the next blog in the 10 Steps to Buying A Home series.