Seven Steps to Successful Purchasing
Buying your first home can be the scariest and most thrilling moment of your life. Generally speaking a home is usually the largest asset and hence largest purchase that most people ever make in their lives. Before getting too far into the process it pays to spend some time learn about the home buying process. Utilising the services of a professional broker will give you access to a wealth of knowledge to make the process go much smoother and without the headaches.
Step 1: Learning the home buying process
Start by learning as much as you can about how the home buying and mortgage application process works. Read as much as you can about buying a home. There are many books that offer hints to first timers. You may even want to attend a seminar conducted by us aimed at providing first time homeowners with important information.
Step 2: Find out the pre-qualified price range
It is important to find out how much you can borrow before you start looking for a home. SportzMortage can assist you in determining this level by taking you through the pre-qualification process and will talk to several mortgage lenders on your behalf to find the right fit.
Step 3: Get Pre-approved for mortgage loan
The next step is to get pre-approved for mortgage finance. This is similar to getting pre-qualified for a price range, but it is a more formal process. You will need to supply proof of your income for the pre-approval process to move forward. Most lenders will want to see income tax returns from the past two years as proof of the income you are claiming.
Step 4: House hunting
After you have been pre-approved for your mortgage loan, it is time to actually start house hunting with a trusted real estate agent. When you have been pre-approved your mortgage lender will give you a letter to that affect stating that you have been pre-approved for a mortgage and the amount you are authorized to borrow. This will serve as an important feature to get the real estate agent engaged in the process. The real estate agent will be much more willing to work with you if they know you can afford the home you are looking at. In addition, sellers will take your offer much more seriously if it is accompanied by a pre-approval letter from your mortgage lender.
Step 5: Make an offer
Once you have found a home that meets your needs, it is time to make an offer on the property. You will already know the most you can spend from the pre-approval process, and you probably will have your own ideas on what the property is actually worth. A copy of your pre-approval letter will be presented as part of the written offer. This will ensure the seller that your offer is legitimate.
In addition, your real estate agent can guide you through the negotiation process. If you are not happy with any aspect of the assistance you are getting – seek other advice. This is a big decision and hence any research and assistance is extremely helpful.
Step 6: Negotiation process
If the seller accepts your first offer, congratulations, the negotiations are over and you're ready to start preparing. If the seller comes back with a counter-offer don’t dismay – this is a regular occurrence. Remember you are trying to get a good buy and they are trying to get a good return. Sometimes the negotiation process can go on for a while, depending on the motivation of the seller, the local real estate market or a host of other factors. The real estate agent should be a good guide through the negotiation process as they are likely to have been through this process many times before.
Step 7: Provide copy of Purchase and Sale Agreement to mortgage broker
After the negotiation process has been completed, you will need to present your mortgage broker with a copy of the Purchase and Sale Agreement for the home to enable full processing and formal acceptance of your loan. Once formal acceptance of the loan is received – loan documentation will be forwarded to you for signing. When all done – congratulations the hard yards have been run and in a matter of time you will be in your own house.
Savings Budget Planner
If you are trying to set yourself up to be able to buy your own home, but feel it is getting away from you – apply today to receive a free copy of the SportzMortgage Savings Budget Planner. This will help you set a plan and will help you achieve your goals in a matter of time.
 |
 |
Member of the Mortgage & Finance Association of Australia