Here are some important things you should ask/consider if wishing to put in an offer:
1. Have the Contract of Sale/Section 32 reviewed by a Conveyancor or Solicitor before you place an offer. They should do this without charging you, if you later engage them for the work. They will ensure you have all of the necessary conditions in the contract, and that everything is all above board.
2. Ask the agent what are the Vendor's preferred settlement period. A 60 day settlement is generally preferable. This allows enough time to obtain the finance approval, and for the bank and your Conveyancor to prepare all the necessary documentation prior to settlement. If you wish to settle earlier, we would normally suggest you have a condition of your offer ’60 day settlement, or earlier by mutual agreement’.
3. If you don’t have a finance approval, or you would like to be extra cautious, you may wish to include ’Subject to finance approval within 14 days of contract signing’, in your offer. The offer is not as strong as an offer with no ‘conditions’, however this is a safe guard to ensure you have your finance formally approved by the bank before you go ‘unconditional’ on a contract.
4. It’s always a very good idea to have the clause of ‘Subject to satisfactory Building & Pest inspection’ in your offer. It’s imperative you have a building expert fully assess the structure of the property and it’s fixtures and fittings before you go ‘unconditional’ on a contract. The cost will be minimal in comparison to the cost down the track if major structural work is required.
5. To hold onto your savings for as long as possible, make your deposit condition ‘$1000 deposit upon acceptance of offer and contract signing’, ‘and the remaining 5% or 10% (preferably 5%), upon finance approval’. This just means you can earn interest on your savings for as long as possible.
6. If your offer is accepted, it’s time to pop the champagne! Ensure you sign the contract with your full names and also put ‘and/or nominees’ at the end, in case you wish to nominate another purchaser onto the contract afterwards.
If you have a Pre Approved loan already, to progress the application through to a formal approval we would generally need the following documents:
* Contract of sale signed by purchaser and seller
* Deposit Receipt
* Details of your Conveyancor
* Final decision on fixed or variable interest rate
* Final decision on the exact deposit amount you want to put in, so we can adjust the loan amount if necessary.
* We may also need updated payslips as well
For more information please speak to Monica van Riet or Erin Rimmer at Mortgage Choice South Melbourne on 03 9681 8182 or firstname.lastname@example.org.