Individuals who have never purchased a home before may never know what is involved in the process. They may also have no idea of what to expect. Sometimes, it depends on the property that is on sale but regardless of that, here are the steps to buying a new home.
The Preapproval
This is always the first move when it comes to purchasing a new home. If you have made the decision to buy a new home, contact your mortgage broker. After that, you are required to submit a preapproval because it will help you to know how much you can afford. That will also help you to shop within the right price range.
The Contract Of Sale Or Offer
This is the second stage of the purchase, and it is when you sign an offer on a contract of sale. The price of the house will be negotiated until both parties come to an agreement that they are both satisfied with. It is advisable to sign the contract with finance, building, and pest clause to protect yourself.
Contract Of Sale Agreement
After the amount is agreed on and the contract is still active, it will be sent to the mortgage broker and conveyancer. The mortgage broker will then order for a valuation of the property. After that, they will get you a formal approval as soon as they can before the finance clause is outdated.
The Contract Goes Unconditional
Once the inspection is completed and you are happy with the results, make sure that your mortgage broker has given you a formal approval and your conveyancer has given you go ahead to go unconditional on the contract. Once the contract is unconditional, the lender will issue a loan contract, and then all parties should start getting ready for the settlement.
Signing Of The Loan Contracts
In this stage, there are a few documents that need to be signed. Therefore, you will require a justice of the peace who will witness the mortgage title documents. It is advisable to go over the loan contracts with your mortgage broker so that you can ensure that everything is in order and that you do not have any outstanding questions.
Settlement Day
As soon as the loan documents are sent back to the lender, they will go through them to ensure that they have been completed correctly. Once they are satisfied with the documents, your conveyancer will be contacted to be informed that they can book the settlement. They will do all the work until they are ready to give you the key to your new house.