Understanding the Home Buying Process
Purchasing your first home can certainly seem like a daunting experience. There’s financing, the housing market and different locations to take into account. Understanding the buying process can clear up your questions and help you know what to look for to find yourself a great investment.
1. Start saving for your deposit
This is the first action that you can start today if you haven’t already. A lot of first home buyers try to save at least 20% of their intended loan price in order to avoid paying extra for Lenders Mortgage Insurance. Some lenders will provide you finance with a low as 5% deposit depending on your individual earning power, your budget and other factors.
2. Check out your finance situation
Even while you’re saving your deposit you can go to speak with mortgage brokers or financial institutions about the level and type of mortgage you will be able to afford. Pay attention to the lender’s comparison rate for a clearer idea of the total costs including interest, and stay objective to choose a loan that suits your goals. You may wish to get pre-approval before you choose your house.
3. Research and select your location
One of the most important steps in the home buying process is to pay attention to the market and identify neighbourhoods that you think will grow in value over time. Look at shopping, transport infrastructure and schools in the area as well as any features that will contribute to your lifestyle there. This will help you narrow your search down to a specific suburb or area.
4. Decide whether you’ll buy or build
This step is particularly relevant in a modern land estate. Think about whether you would like to step into an already completed home, to purchase a house and land package or to choose land only and think more about the type of home you would like to build. At this stage it’s worth visiting some display homes and any newly built homes you are interested in.
5. Choose your land, home and builder
By now you should have a good idea of what you’d like to buy and have discussed this with the sales team if you’re looking to buy in an estate. At Plantation Palms we have house and land packages available from leading local builders including Dixon Homes, Gemini Homes and Hotondo Homes.
6. Make an offer
Once you’ve made your decision and thoroughly inspected the lot or property, it’s time to make an offer. This is usually through a written offer to the agent, from which they will either negotiate further or formalise your offer into a contract of sale.
7. Review the contract of sale
Take some time to review your contract of sale and go over it in detail with your solicitor. It’s worth checking that the contract is conditional on financing as well as a building and pest inspection. You may elect to have a 5 day cooling off period for all residential housing contracts to ensure you’re satisfied with the terms.
8. Pay your deposit
Now’s the time to pay your initial deposit and wait to receive the title and any keys to your property. Nearly all settlements occur within 1 to 3 months of the offer being finalised. Next, you’ll be able to move straight in or sit back and wait for your home to be built.
For more information, the Queensland Government offers helpful advice on buying a home.