Fhog

[tyldd]

The FHOG is reduced significantly in only a few weeks for the property I was looking at purchasing. Is there any hope of still qualifying for the grant or have I missed my chance?

I haven't bought a home before so I'm unsure of how I could speed up the process. Can I sign a contract before applying for loans etc and still qualify? It's a newly constructed (or still under construction) if that makes a difference in the process.

If the answer is no, how likely is it that the house could be negotiated lower to compensate?

 

[Peter_Tersteeg]

To get the grant at its current level you need to enter into a contract before October 1st. The settlement date isn't so important, neither is qualifying for the loan. A lot of people sign contracts before figuring out their lending options, but I generally advise against it.

I personally don't see house prices dropping from October due to continued demand. I don't expect you'll save money by waiting.

 

[tyldd]

If financing isn't an issue would you still advise against signing the contract early?

Do I need to send a copy of the contract before the cut off date or is it just the date of the signing that's important?

 

[Propertunity]

or is it just the date of the signing that's important?

It is the date that contracts are actually exchanged.

 

[Skuri]

It is the date that contracts are actually exchanged.

What that means is the date BOTH parties sign the contract. So, you have until the end of September to enter into the contract and still get your money.

If you don't have l;ending sorted (ie: who you'll go with etc) juts make sure you allow loads of time for settlement in case there's an issue with getting finance as you'll need to shop around. If it's just that you don't have pre-approval, it means nothing anyhow!

I'd have to agree that prices are unlikely to drop after October 1st. The market is too hot. Good luck

 

[bettedavis]

To get the grant at its current level you need to enter into a contract before October 1st. The settlement date isn't so important, neither is qualifying for the loan. A lot of people sign contracts before figuring out their lending options, but I generally advise against it.

I personally don't see house prices dropping from October due to continued demand. I don't expect you'll save money by waiting.

I am just wondering.. do you advise against it becasue they signed contracts when they haven't figured out their borrowing power (so contracts fall through due to financing) or because they wouldn't have enough time to shop around for the best option (so may have to refinance later?)

I have been waiting until FHBG is gone however now I think I better take advantage as house prices are unlikely to drop.

But I think it might be too late now mainly because it may take more than a month to find a lender and get approval.

Any advice?

Cheers

 

[Peter_Tersteeg]

I advise sorting out your finance before signing a contract because most first home buyers have very little understanding of what they actually need to do to be able to purchase a property.

If you're planning to build a portfolio getting the right finance can be just as important as buying the right property. Refinancing later can be costly and in some cases not possible if left.

I'm not saying it's always necessary to get a pre-approval, in a lot of cases, figuring out finance can be a very quick and easy process. In other cases it can be more difficult and it's prudent to get a pre-approval before proceeding. In this case it can take some time.

Talk to a broker to discuss your options and to figure out what you can do.