8 Steps Of Owning a Home
Whether you’re a first home buyer, or subsequent home buyer, owning your home could be one of the greatest investments you’ll ever make. So it is important that you understand the entire process in order to make the most suitable decisions for yourself. Here are our 8 steps to owning a home when you use G7 Finance as your mortgage broker service.
1. Do You Qualify For a Home Loan?
Based on the initial information you provide to your mortgage broker, our broker will determine whether you meet the eligibility criteria for finance and can proceed with a loan application. Some of the things that the broker will need to consider in determining your eligibility for finance will include your household structure, employment history, income and other debts, deposit funds and genuine savings.
2. Completing Your Loan Application
When you meet with your mortgage broker to complete a Client Data Form, it is important that you provide all of the documents listed on the Document Checklist that forms part of the loan application. The more documentation you provide the higher are the chances of being accepted by the lenders. If not all of the documentation is presented there may be a delay on the processing of your application.
3. Pre-approval Process
You and your broker will receive a pre-approval once the lender has received your application and supporting documents from your broker and your application meets all lending requirements. Your pre-approval document will outline the amount you can borrow so that you know how much you can spend on a home.
This pre-approval will also list the conditions you need to meet to proceed to formal approval. These conditions should be provided to your broker as soon as possible in order to expedite the formal approval process.
Your pre-approval is valid for 90 days so that you have some time to consider a home suitable for your needs and financial capabilities. Research online and seek advice from real estate agents. You may also like to look over the information provided by the Department of Commerce on Buying and selling a home. You should never make an offer on a home without a pre-approval.
4. Formal Approval
Once you have made a successful offer on a home and met all of the conditions on your pre-approval, you will receive formal approval. The process of finding a home and reaching the stage of formal approval is roughly 30 days for an established property and 45-60 days on the vacant block of land if you are building a new home. The time frame largely depends on whether you have satisfied all of the conditions and the builder has prepared a building contract and plans.
5. Sign and Return Documents
Following formal approval, you will receive your loan and mortgage documents to sign to formalise the contract. Your settlement agent will also prepare documents and forward these to you for signing.
Once the loan and mortgage documents have been returned, the lender will liaise with your settlement agent in order to arrange settlement. At G7 Finance we do this all for you. So not to worry about finding a settlement agency unless otherwise stated before this process occurs.
6. Settlement
A date will be set for the transfer of the property into your name. The standard waiting time for that date is 30 days and this is usually negotiated by the current owner and the new owner.
Your broker will guide you through this entire process.
7. Move In!
Move in to your brand new home and look after yourself and your family by budgeting well to manage your financial responsibilities.
8. Manage Your Home Loan.
Once you have moved into your new home and everything has settled, G7 Finance will contact you on an annual basis. We aim to always maintain a great relationship with our clients, advising of any better deals / savings and reviewing your current home loan, most of all we are here as support for you in case you have any further questions regarding your home loan or if you need help with your finances.