Are you dreaming about purchasing your own home but have no idea what the financial process is?
You’re not the only person to feel lost when it comes to understanding what actually happens when looking to secure a home loan. In fact, we regularly field calls from first-time home buyers asking about the home finance journey.
To help everyone who feels lost understand exactly what to expect, we’re going to walk through the process one step at a time, from application to post-settlement.
Your first step is to apply for a conditional pre-approval. It’s not a requirement, but it’s a great first step and can help you narrow your focus, understand your purchasing power and feel confident in the home you ultimately choose.
Your goal is to have pre-approval two to three months before you’re ready to purchase. So now is the time to schedule an appointment with our team to get started on the pre-approval process.
Once you have your pre-approval process in hand, you can begin searching for your next home!
You’ve got your pre-approval in hand, and you’ve found the home of your dreams. It’s now time to start the home loan application. The easiest way to complete your home loan application is under the guidance of a mortgage broker who will understand exactly the documents and information you’ll need. This might include payslips and bank statements for example.
Once your application is submitted, the lender’s assessment team will then complete the compliance and assessment process to check your suitability.
With home loan application completed you and the vendor of the property can now sign your Contract of Sale. This document will list your negotiated selling price, settlement terms and any other conditions required to complete the sale. One of the conditions will be finance clause. It’s a good idea to seek guidance from your mortgage broker and conveyancer on the number of days you have to meet that requirement.
At this time you’ll also need to arrange your property and pest inspection and meet any other conditions of the Contract of Sale. Your initial deposit will be payable to the real estate trust account within two business days of signing the contract as well.
If your home finance application is successful, you will now receive confirmation of approval and your lender will issue you with the loan documents. You will need to review and sign these within five business days. If you have engaged a mortgage broker like Stapleton Finance for guidance, we can support you with any questions or concerns you may have.
Your conveyancer will provide a settlement statement approximately four days prior to the arranged settlement date. Our team will provide with a ‘ready to settle’ confirmation. In this confirmation, we include an estimate of your funds to contribute.
Settlement is when the purchase of the property is completed. Typically, settlements occur around 2pm and your conveyancer will provide confirmation that the settlement has been completed. At this point, you’ll be able to collect the keys to your new house and celebrate!
Post settlement your lender will also provide you with a settlement statement, confirmation of home loan repayments and the date of your first payment.
The Stapleton Finance team has a wealth of expertise and more than 40 lenders on our books, so we are sure to find the right home finance for you. We have helped many first-time homebuyers on their journeys – get in touch so we can help you today!
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