Buying a home involves a lot of people: you, the agent, your lender, a valuer and your conveyancer or solicitor. Knowing the order of events makes it far less stressful.
1. Pre-approval
A lender reviews your income, expenses and savings and indicates, with conditions, how much it may lend. Pre-approval usually lasts a few months. It isn’t a guarantee: final approval depends on the property and a full assessment.
2. Find a property and do your checks
Before you commit, arrange building and pest inspections (and a strata report for units), and have your conveyancer or solicitor review the contract.
3. Make an offer or bid
The rules differ between states and territories, and between private sales and auctions. In many places an auction purchase is unconditional, with no cooling-off period and no finance clause. Ask your conveyancer how it works where you’re buying before you bid or sign.
4. Exchange contracts and pay the deposit
Once contracts are signed and exchanged, you pay the deposit, often up to 10% of the price. From here you’re legally committed, subject to any conditions in the contract.
5. Formal approval
We send the signed contract to your lender. The lender arranges a valuation of the property and completes its assessment. If all is in order, it issues formal (unconditional) approval.
6. Sign your loan documents
The lender sends the loan contract and mortgage documents for you to sign and return. We go through them with you.
7. Get ready for settlement
Arrange home insurance, as lenders generally need it in place before settlement. Your conveyancer works out the final figures, including any transfer duty, and you do a final inspection of the property.
8. Settlement day
Your lender pays the seller, the property is transferred into your name, and you collect the keys. Your first repayment is usually due about a month later.
Where buyers get caught out
- Bidding at auction without knowing the purchase is unconditional.
- Letting pre-approval expire, or changing jobs or taking on new debt before settlement.
- Forgetting costs such as duty, legal fees and inspections.
We’ll guide you through each step
Book a free 15-minute chat and we’ll map out the process for your situation.
This article is general information only and doesn’t take your personal circumstances into account.