Advice For Buyers

Take the time to learn the finer points of purchasing a property before you sign anything…

• Arrange finance pre-approval through your mortgage broker before looking for a new property. You will then know exactly how much you can borrow and spend.  Your broker can also assist with setting a budget and calculating your repayments.   By organising your finances in advance, you will be well positioned to commit to a purchase, either by bidding at an auction or negotiating a private sale.

• Arrange for your solicitor to review any contract prior to signing. This is particularly important when special conditions apply. Most solicitors will do this as part of their professional service.

• When you have found the right property and are ready to sign a contract, make sure you insert all of the appropriate ‘subject to’ clauses. Ensure timeframes for these clauses are realistic (ie. a minimum 14 days for finance approval - even if you have pre approval), building and pest inspections, and at least a further 14 - 21 days after this until settlement. Remember, public holidays will also impact on the available time.

• If you are purchasing using existing property equity, your broker should have advised you that the mortgage provider may not require a valuation to be done (on the purchase property). You may wish to instruct a valuer of your choice to ensure you have negotiated a fair market price (at your cost).
Take the time to learn the finer points of purchasing a property before you sign anything…

• Arrange finance pre-approval through your mortgage broker before looking for a new property. You will then know exactly how much you can borrow and spend.  Your broker can also assist with setting a budget and calculating your repayments.   By organising your finances in advance, you will be well positioned to commit to a purchase, either by bidding at an auction or negotiating a private sale.

• Arrange for your solicitor to review any contract prior to signing. This is particularly important when special conditions apply. Most solicitors will do this as part of their professional service.

• When you have found the right property and are ready to sign a contract, make sure you insert all of the appropriate ‘subject to’ clauses. Ensure timeframes for these clauses are realistic (ie. a minimum 14 days for finance approval - even if you have pre approval), building and pest inspections, and at least a further 14 - 21 days after this until settlement. Remember, public holidays will also impact on the available time.

• If you are purchasing using existing property equity, your broker should have advised you that the mortgage provider may not require a valuation to be done (on the purchase property). You may wish to instruct a valuer of your choice to ensure you have negotiated a fair market price (at your cost).
• Insurance cover is the responsibility of the purchaser from the time the contract comes into force. This is very important. The mortgagee’s interest may need to be noted on the insurance cover note, so confirm these details with your mortgage broker.

• Make certain all ‘subject to’ clauses are met to your satisfaction. Your mortgage broker will advise you and your solicitor of the finance approval. Once your solicitor advises the seller’s solicitor that all clauses have been met satisfactorily, then the contract becomes unconditional.

• Keep in contact with your solicitor and make certain all is in order at least five working days before settlement is due to take place.  Do not assume that all is okay if you haven’t heard anything – it can be a very costly error if the settlement has to be postponed.

• Make sure your bank account details are up to date. Ensure that any new arrangements are in place and working in readiness for the first repayment to take place.

Just contact me if you have any questions about the purchasing process. I  would be delighted to help!