Does the thought of getting a home loan seem a little daunting? We’ve put together a breakdown of the most common steps in the process, so you know what to expect:
1. Compare the market
Before starting the loan application process, it’s a good idea to take some time to read about the different options that may be available to you. Comparethemarket.com.au has put together this information in any easy to understand guide to help you get the information you need. Once you have compared home loans and submitted an inquiry, we’ll send your details to a mortgage broker. They’ll then give you a call to chat through your home loan options.
2. Pre-approved loan
Even if you haven’t found your ideal property yet, it could be a good idea to start the loan process anyway with a pre-approved loan. Applying for a pre-approved loan is a great way to understand how much you may be able to borrow and to get an idea of what your repayments may be, depending on the type of property you are looking at and the type of loan you are applying for. Your mortgage broker will be able to take you through the details of this. Please note that pre-approval is indicative only, and is subject to a final assessment by the lender.
3. Find a property
It is important to do your research before you start to look for a property, as there are many factors you will want and need to take into consideration. Head over to our Find A Property page where we talk about the different considerations in more detail.
3. Sign a Contract of sale
Your purchase does not become a legal commitment until you and the seller sign the Contract of Sale (also known as Offer of Acceptance in WA). The contract confirms the purchase amount and any terms and conditions with the sale.
4. Pay a deposit
Once the Contract of Sale has been signed by all parties, a deposit will normally need to be paid.
5. Appoint a Conveyancer
Once you have signed the Contract of Sale, you’ll need a Conveyancer to check over the legalities of the contract. They will also check that the rates and taxes have been paid on the property. On settlement day, the conveyancer will make sure the correct amount of money has been transferred between the lender and seller, so you can legally take ownership the property.
6. Cooling off period
After signing the Contract of Sale, provided you didn’t purchase through auction, there may be a cooling off period where you can cancel the contract should you change your mind or your circumstances change. There may be a penalty and the cooling off periods vary between states, so check with your mortgage broker for more information on this.