You’ve made the first big step, deciding to buy a house. You have a deposit saved, or at least some savings started. The next step is finding out how much a lender/bank will loan you towards your first home. This way you’ll start off looking in your price range and have realistic expectations.
At this stage, it’s a great time to talk to us at First Step Home Loans. We will help you work out what documents you need to begin the process.
- Pre -approval
This is working out the maximum amount that you can borrow based on what you have saved towards a deposit, debts, income and overall ability to service the loan (your ability to pay it back). Pre-approval is usually valid for 90 days.
- Home loan application
We will assist in this part, letting you know what documents you need, this is where our decades of knowledge in finance will assist you in choosing the best home loan for your financial situation. Want to know more about Home Loan types? Find them here.
- Lender approval process
Your chosen bank/lender assess your application over 3-5 working days. When you receive their answer you may receive a conditional approval, meaning your home loan application is approved in principle, but subject to further paperwork such as a sale and purchase agreement and/or a property valuation report.
- Sale & Purchase Agreement
This is the agreement that you will sign once you find a house you want to put an offer on. You will need to provide a copy of this to your bank to make sure they are happy with the chosen property and will, in turn, lend you the required money.
- Property valuation
If your deposit is under 20% your bank/lender will require a valuation report, this takes up to 3-5 days and needs to be done with a registered valuer. At a cost to you of around $500-$600.
- Unconditional approval
You have ticked all the boxes required to get your loan, and now your lender/bank has given the go-ahead for you to purchase the house. Now your unconditional offer just needs to be accepted by the owner.
If your offer is successful it’s time to start organising moving in! But if the offer isn’t accepted it’s time to start house hunting again or looking into the option of building. Check out our building contract page to get a better understanding of what options there are for building a new home. [link to building contract page]
Want to make sure you get all your paperwork in order?
Contact us at First Step Home Loans, it always pays to have an expert on your house-hunting team!