Determine your borrowing power

The first mistake many homebuyers make is searching for homes before determining their borrowing power. It takes very little time to enquire with a broker or a financial institution to gauge your borrowing power. You may not proceed with an application immediately, but you will know more clearly where your limitations are. In addition to this, if you have a preferred broker or lender, make enquiries as to the 'pick up' time for applications. Depending on the time of year and market in general, institutions go through periods of high demand where applications take longer to process, this is vital information when making an offer.

Find your ideal property

This step seems straight forward, but there are a few ways to go about it! You can search public listing sites like Realestate.com.au or Domain, or for a more proactive approach, you can find a promising agent and subscribe to their buyers list to be provided access to listings before they become public. Consider your personal style, and also proximity to amenities like schools, universities, hospitals and leisure areas.

Inspect

In the past few years inspections have been difficult to juggle with lockdowns, however they are as important as ever. A few things to keep an eye out for are sagging or stained ceilings, damp or mould around skirtings, windows and doors open without being caught, test the taps/toilets and reviewing the general state of the building. At this point consider how the property will fit for you as well. As beautiful as some properties may be, imagine yourself living in the property, this will help you figure out how practical the property is in your day-to-day life.

Making an Offer

Making an offer can be nerve-wracking, however there are a few important steps that can put your mind at ease. Assuming the property is not at a live auction, there are at least two conditions that should be seriously considered when making a formal offer. Firstly, subjecting the contract to a building and pest inspection. The inspection is to ensure a professional thoroughly inspects the integrity of the property so there are no nasty surprises down the line. The second is a 'subject to finance' condition. Unless your finance has already been confirmed by your institution, serious thought should be given to this clause and the timeframe allowed to secure finance under the contract. The initial enquiries you made before searching for a property should have given you an idea of your borrowing capacity and the pick up time for applications.

Finding a Conveyancer

As soon as you make an offer, you should seek a conveyancer. If the offer is accepted, it will go to contract, and you will want a conveyancer on side to review the contract prior to signing. Better yet, a good conveyancer will be forward thinking, and will likely give advice on their suggested period of the subject to finance clause, as well as advise on how you may seek an extension if one is needed. We work with some of the most reliable in the business, so we can help here if needed.

Unconditional Date and Settlement

The unconditional date is the last due date for any contract conditions, or the date that you convert the contract to unconditional (electively), whichever happens first. When the contract converts to unconditional, we are in the waiting process for the settlement date. Be very aware of your settlement date and make sure you are in regular communication with your conveyancer. Any additional funds outside of financed amounts may need to be transferred and cleared in the conveyancers trust account prior to settlement. At settlement, you should receive confirmation of the successful transfer, and then arrange with the selling agent to pick up keys. Congratulations!