the step by step guide

There is lots of information in the marketplace about buying a home, so we thought we would simplify it so there are just a few different steps to follow in order to understand the process.

	A deposit is number one on our list, and is probably something that you’ve already started thinking about. The more you save, the less you have to borrow.
	Check with us how much we’re likely to lend to you. This will give you a good indication of the types of houses / units to look for and in what areas as some suburbs are cheaper than others.
	Start researching the areas where you want to buy. Attend open houses (and auctions) to get a feel for the area. Introduce yourself to a real estate agent who can keep a lookout for similar properties that might be of interest to you.
	One you’ve found the house you want, clarify with the real estate agent what fixtures are included (e.g. dishwasher, smoke alarms, etc.).
	Decide on what price you are prepared to pay for the house and make a formal offer. Remember that you can make an offer that is below the asking price of the house. This offer will need to be made in writing and the real estate agent will organise the ‘Disclosure to Buyer’ form and a ‘Contract of Sale’ document with a ‘Warning Statement’ attached. When you make an offer, you will need to give the real estate agent a deposit. The real estate agent holds this deposit and it is released to the seller as part of the sale price once the house settles. Make sure that when you sign the Contract that the fixtures discussed in step 4 are listed. In the Contract you can also put in any special conditions that you would like, such as: subject to building & pest inspection subject to finance subject to sale of an existing property These special conditions are clauses that allow you to cancel the contract due to these conditions not being met (e.g. you cannot get finance from a bank/credit union). You can be as specific as you like in these conditions and even list things such as ‘Subject to finance from Queensland Country Credit Union’. Queensland contracts usually include the building and pest inspection clause. If these inspections reveal any problems you can terminate the contract. Alternatively, you can ask the vendor to adjust the sale price or make the contract conditional on the vendor fixing the problem.
	The real estate agent will submit the ‘Contract of Sale’ to the seller. Once accepted, request a copy of the one signed and dated by the seller.
	As soon as your contract has been accepted you need to: Apply for a home loan. We will do our best to get an answer to you within 24 hours. For more information on the things we need to assess your loan, see our applying for a home loan section. Contact your solicitor who will organise conveyancing and make inquiries to various Government departments regarding zoning, land tax, etc. If the property is a unit, your solicitor may perform a strata-records inspection. Organise the building an pest inspection. The inspector must be licensed by the Building Services Authority (www.bsa.qld.gov.au). Organise for home and contents insurance. It’s always a good idea to start this as soon as possible in case anything happens to the property before settlement as it is your responsibility after signing the contract.
	Your solicitor will complete transfer documents which verifies that the property is to be transferred from the seller’s name into your name. You need to pay Transfer Duty to your solicitor for this document.
	Settlement is the second last step of buying a home and involves paying the rest of the purchase price. You then get legal title of the property. The settlement date is always specified in the Contract of Sale, although it can be varied by mutual consent of both the seller and buyer. The property must be handed over in the same condition as it was on the day of inspection, and you are entitled to have a building inspection done again just to make sure. Your solicitor or their agent will attend the settlement on your behalf and will hand over the bank cheque for the rest of the purchase price.
	The last step is the best one – you get to move in! After all that hard work, it’s time to celebrate your purchase and relax in your new home.

If you would like to know how much you can borrow before you start searching for a home, just contact us and we can provide you with a pre-approval.