Found your dream home but unsure what to do now? Here is everything you should know before signing on the dotted line.
Finding the perfect place is exciting and often you want to run straight to the real estate to get your offer in but be careful to ensure everything is in place before signing your contract.
When you make your offer your will sign a contract of sale with your offer noted as the purchase price, remember this is not a binding contract until your offer is accepted and the seller also signs the contract. The first thing to remember throughout the process is that the real estate agent is working for the vendor and themselves not you, so don’t just assume that the contract you are signing is in your best interest.
What Should I look for in the contract?
You should always sign a conditional contract subject to building and pest. These clauses are in place to protect you as the buyer in the event you need to pull out of the contract. The finance clause means that if your loan application does not get approved for finance you can walk away without any penalties to yourself and you will get any deposit you have paid reimbursed. Building and pest will allow you to walk away if there are major issues to the property you are not willing to take on. The real estate agent may try to convince you to sign an unconditional contract but you should remember that doing so will mean you cannot walk away with penalties which can be quite substantial.
You should also check that removable items are included in the contract if you have been told they are a part of the sale, such as dishwasher, fridge, furniture, curtains/blinds and floor coverings.
What time frames should I have?
Your building and pest date should be 7 days from the date of the contract.
Your finance date should always be at least 14 days or 21 days for any complex loans. Generally speaking, lenders take around 2 weeks on average to process application meaning agreeing to any shorter period means you are at high risk of missing your finance date.
Your settlement date should be at least 30 days or 45 days for any complex loans. A longer settlement is fine but any shorter may mean you will need to extend your settlement down the track which can occur penalties. The lenders and your solicitors need time after your finance date to get all documentation in place ready for settlement.
I’ve signed my contract, now what?
As soon as you have signed a contract you need to notify your mortgage broker and solicitor as soon as possible and provide them with a completed copy once you receive it. Holding off on providing your contract may mean important dates are missed due to lack of time.
How do I know how much I can offer?
Book an obligation free appointment with us today and we can get you started with a pre-approval and provide you with the comfort and knowledge you need to go house hunting!