Confirm Your Solicitor
It's important to make sure you have a solicitor sorted before you make an offer because you will be asked for their name and contact details when filling out the document!
Most solicitors offer a first home buyers package at a set price that will cover all the things they need to do. If you don't know who to go with try looking up some reviews online, or talk to family, friends or colleagues who have recently bought a home - they might be able to recommend someone for you!
Make An Offer
Once you've found your dream first home it's time to make an offer. So where do you start? To make sure making an offer is as stress free for you as possible we spoke to the experts to get their advice on the right approach here.
Once you have made an offer the seller may either accept it, decline it, or make a counter offer. If they make a counter offer you can choose to negotiate with them on the selling price. And if they except? Yay! You are now on the home stretch!
If your offer is accepted you will then be required to sign a Sale and Purchase Agreement, which covers things like the dates, selling price, and conditions of sale. It's important to check whether the Sale and Purchase Agreement has a cash clause, because this means that a cash buyer can make an offer on the home during your conditional period. If you have any questions or concerns make sure you ask your Real Estate Agent - they are there to help.
Go Back to Your Bank
Once you've had an offer accepted on a property you then need to go back to your Bank. The Bank will review the property to make sure it complies with their requirements - if it does they'll then provide you with a letter confirming Conditional Loan Approval.
Conditional Approval means that your application has been approved with the condition that you meet some additional requirements. To accept this offer of conditional finance you will need to sign it and return to your Bank as soon as possible.
These conditions usually require you to gather specific documentation relating to the property to allow the bank to determine whether your lending for the property will be officially approved. Your Bankshould clearly explain what needs to be provided and the date they need to be provided by. If you have any questions at this stage don't be afraid to ask your Banking Specialist - they're there to help!
Complete Your To Do's
Once you've talked to your Bank it's time to complete your to do's!
You should have a list of the tasks that your Bank has asked you to complete, as well as any conditions you put in to the contract yourself.
If you have conditions in your offer, you will also have agreed to a date that you need to complete these tasks before - the seller can't wait around forever! Make sure that you have completed all your to do's, including securing your lending, before this date so that you don't miss out on your home.
Once you have provided the necessary documents to the bank your Bank will review the documentation to see if it satisfies the conditions of finance. If satisfied your Bank will be able to officially approve your loan!
Now that your lending has been approved there are a few remaining tasks that you need to complete before the home is yours (you're almost there!). These include:
- Confirming Your Loan Structure
- Visiting Your Solicitor
- Settlement and Drawdown
Find out more about these steps on the Settlement section of our Step-by-Step First Home Buyer's guide.