What Is The Process For Buying A House In Perth?

In this blog I will look at what is process when buying a property in Perth, the things required, and an approximate time frame, if you were to make an offer to purchase a house.

The first stage would be to speak to a mortgage broker, to look at your various options, what you can borrow, look at what deposit maybe required, and if you are a first home buyer, what various grants maybe available to you.

This way you will know your budget when looking for a home, the deposit required, and the fees, like transfer stamp duty that might be applicable to you. You will also know your various banks that might be an option for your home loan.

It maybe worth considering a pre approval home loan application, when you are ready to start looking for a house to buy. Pre approval finance is a full home loan application to a bank or lender, and if the pre approve your home loan, the pre approval maybe valid for generally 3 months. This gives you a more secure knowledge when looking at properties, that your finance has been pre approved. There is no cost or obligation with a pre approval home loan application, and if you don’t find a home within the 3 months, if you are still looking for a home, we can simply apply for another pre approval home loan application.

You don’t need pre-approved finance but knowing what is required before you start looking at properties, is recommended, so you can set a budget, and know what deposit you may need, so it is worth discussing with a mortgage broker what you need, so you can be at least pre-qualified for a possible home loan application.

Once your finance is pre-approved or you have been prequalified, and you know your budget, you can start looking at properties.

It is a good option to look at many properties, as you can get an idea of what you may think a property is worth, in the areas you may be looking at. If you do find a property you like, you may want to make an offer on the property. The offer you make (the price), will be presented by the real estate agent to the sellers, and they may accept you offer, or they might make a counteroffer, which the real estate agent will present back to you. The counteroffers may go back and forth a few times, before you both agree on a price, if an agreement can be reached.

Generally speaking, if your offer is accepted, you would have a condition on there, that the offer is subject to finance approval. With the finance approval that is written on the offer, there is a period of time, that your finance needs to be approved by. On average the finance approval time is 4 weeks (it may be less or more; this is just average). That means you and your mortgage broker have 4 weeks to have the finance approved.

During the finance approval period, the bank will have a valuation company value your new home, to make sure it is a fair market value (a fair price), and the bank will verify the information that has been provided to them, like your incomes, other credit facilities conduct and employment histories.

Also, on the real estate contract (called an offer and acceptance) is a settlement period time. This settlement period time is the period from the time from when your home loan finance is approved, to the day of settlement, when the property becomes yours, and you can move in. An average settlement time is 3 weeks, but this can be less or more, depending on yours and the seller's circumstances.

Another clause / condition to consider putting the in the sales contract, if you are buying an established property is considering putting a building and a termite / pest inspection clause in the contract. These are inspections are usually complete, once your finance has been approved, and at the buyer's expense. It may give more piece of mind that the property you are purchasing is structurally sound and is free from termites and other pests. There is more information on building and termite / pest inspections here.

Once you offer has been accepted you will also need a settlement agent or solicitor to help with the settlement of your property. A settlement agent / solicitor helps transfer the property and shire rates into your name, and actually attends settlement and helps control your deposit and home loan transfer between the buyer and sellers.

Once your finance has been approved, we will receive mortgage documents from the bank to sign, and we will catch up, go through the paperwork, then sign and return the completed paperwork back to the bank.

Once the bank has received the signed home loan paperwork back, they will verify it, and if all ok, they will be ready to settle on your new home.

It will also be a condition at this stage to have building insurance put in place for the property you have purchased. We need to provide the building insurance sometimes called a certificate of currency to the bank. Once they have this, they will be ready to settle your home.

Your settlement agent will organize a settlement date with the sellers, once both the buyers and the seller's banks are ready to settle.

On the settlement date agreed, once settled, you will be given the keys to your new home, and you can get ready to move in. Your home loan will also be active from this settlement date, and you will start making repayments to your home loan, with weekly, fortnightly or monthly, depending on your preference.

As a mortgage broker, I will keep you updated on the application and settlement stages at all times for your home loan, keeping you informed and up to date and what may be required.

On average, from making an offer on a property to the settlement date, the period of time is around 7 weeks. It can possible be quicker or longer, as long as both the buyers and the sellers agree.

If you have any questions at all, please contact Perth Mortgage Broker Group, or call Troy on 0411 229 602, 7 days a week