The process of buying your first home can be quite daunting so Pope & Co will help you every step of the way.
1. Obtain a pre-approval from Pope & Co – this is normally free and will put you in a stronger negotiating position!
2. Search the internet and property magazines to get a feel for property prices in certain areas that are within budget. You can use Quotable Value E-Valuers (approx $40) to get a feel for the value on any property you are keen on. Trademe, Realestate and Open2view tend to be the most popular sites.
3. Determine how much you are happy to spend within your pre-approval budget – it may be less than the pre-approval amount. We work through the options with you and you can email Craig anytime if you have questions.
4. Place a home purchase offer by signing a sale and purchase agreement coordinated by the agent (or seller's lawyer if by private sale). Both seller and purchaser must agree on the terms of the sale. Put your conditions into the offer, for example: subject to arranging satisfactory finance within minimum 5 working days, subject to builders report, title search, LIM report, subject to valuation etc. Private sales usually require a registered valuation for the bank.
5. Once your offer is accepted (it may have been counter-offered at a higher price), start working on confirming the conditions within the days stated e.g. book a house inspection, valuer etc. The agent will send the sale & purchase agreement to your lawyer and mortgage broker (us!). We will help you through this process!
6. Finance/unconditional/confirmation date – this is the date when all conditions must be met. It’s possible this date could be extended and the price/terms renegotiated. Once all conditions are satisfied, the offer goes “unconditional” meaning the purchaser is now legally bound to purchase the property. A deposit is paid to the agent.
7. Lock-in your interest rate (depends on your individual plans discussed with broker) and structure. A bank account is set-up with the lender and mortgage documents are sent to your solicitor. You sign the documents with your solicitor and arrange insurance to ensure all risk is covered.
8. Do a pre-settlement inspection a day or two before settlement
9. Transfer of ownership happens on the settlement date and then keys are handed over to the buyer. Solicitors will handle the transfer of funds.
Building a new home usually requires at least 10-20% deposit and a build contract with a qualified builder/company. Banks prefer a fixed price contract and a valuation of the section, and a completed value is required.
For more information or to discuss your options please contact us