Sorry, I know this has been done a million times. I just spent the last hour going over old threads, but would like to consolidate and confirm the process in my own mind.
1- Pre approval.
Find a mortgage broker and determine borrowing power. Get pre-approval on loan.
Do you get pre approval up to a maximum amount? Say my borrowing capacity is $350k, the bank will pre approve a loan up to that amount, even if I'm only planning to spend $300k?
I take it that pre approval comes with conditions on where and what properties you can buy?
If I find something I like, do I then have to go back to the lender with the details on the property to double check that they will lend on said property (before making an offer)?
2- Research / Search.
Find the right property for my strategy.
Do you guys use a buyers agent or specific real estate agent?
Is it fine to search online through real-estate/and/domain.com.au? Then contact the agent directly using the details provided.
3- Inspect.
Inspect properties in the area and properties you might consider making an offer on.
4- Offer.
Make an offer. How is this done? Verbally? Written?
Is this just a basic offer on price, or do I include any clauses at this stage?
How negotiable are the prices listed online? Is it like selling a used car where most people put up an ideal price expecting to negotiate a bit?
5- Acceptance/Contracts (or rejection)
If accepted at this stage the vendor will send me the contract? I need to have the contract looked over by a solicitor and/or conveyancer?
What is the difference between the two?
Include any clauses for pending finance approval, building inspection, pest inspection, anything else?
Sign everything and exchange contracts with vendor.
Pay 10% deposit at this stage?
6- Cooling off period.
Have all building/pest inspections carried out and finalise finance. Conveyancing of land and property. Or would I have this done before signing the contract?
7- Pre settlement inspection.
Just to make sure the property has not been changed/damaged during the settlement period.
7.5- misc.
I should also have sourced a property manager and have informed them of when settlement is due so they can start searching for a tenant?
Also should be organising gas/water/electricity be turned on at settlement date or just before.
8- Settlement.
Handing over of the deeds, keys etc...
8.5- Insurance.
What insurances do I need?
Just read that I may be better off buying insurance as soon as contracts are exchanged.
9- Stamp duty.
Due 30 days after settlement?
***
I know there is a ridiculous amount of question marks up there. I just want to make sure I have the right process in mind.
Also, does anyone know roughly how much you can expect to pay for legal advice (solicitor/conveyancer) and inspections (building/pest) during this process?
Thanks for tolerating all my questions.
1- Pre approval.
Find a mortgage broker and determine borrowing power. Get pre-approval on loan.
Do you get pre approval up to a maximum amount? Say my borrowing capacity is $350k, the bank will pre approve a loan up to that amount, even if I'm only planning to spend $300k?
I take it that pre approval comes with conditions on where and what properties you can buy?
If I find something I like, do I then have to go back to the lender with the details on the property to double check that they will lend on said property (before making an offer)?
2- Research / Search.
Find the right property for my strategy.
Do you guys use a buyers agent or specific real estate agent?
Is it fine to search online through real-estate/and/domain.com.au? Then contact the agent directly using the details provided.
3- Inspect.
Inspect properties in the area and properties you might consider making an offer on.
4- Offer.
Make an offer. How is this done? Verbally? Written?
Is this just a basic offer on price, or do I include any clauses at this stage?
How negotiable are the prices listed online? Is it like selling a used car where most people put up an ideal price expecting to negotiate a bit?
5- Acceptance/Contracts (or rejection)
If accepted at this stage the vendor will send me the contract? I need to have the contract looked over by a solicitor and/or conveyancer?
What is the difference between the two?
Include any clauses for pending finance approval, building inspection, pest inspection, anything else?
Sign everything and exchange contracts with vendor.
Pay 10% deposit at this stage?
6- Cooling off period.
Have all building/pest inspections carried out and finalise finance. Conveyancing of land and property. Or would I have this done before signing the contract?
7- Pre settlement inspection.
Just to make sure the property has not been changed/damaged during the settlement period.
7.5- misc.
I should also have sourced a property manager and have informed them of when settlement is due so they can start searching for a tenant?
Also should be organising gas/water/electricity be turned on at settlement date or just before.
8- Settlement.
Handing over of the deeds, keys etc...
8.5- Insurance.
What insurances do I need?
Just read that I may be better off buying insurance as soon as contracts are exchanged.
9- Stamp duty.
Due 30 days after settlement?
***
I know there is a ridiculous amount of question marks up there. I just want to make sure I have the right process in mind.
Also, does anyone know roughly how much you can expect to pay for legal advice (solicitor/conveyancer) and inspections (building/pest) during this process?
Thanks for tolerating all my questions.