Tips & Guides

A QUICK GUIDE TO THE HOME PURCHASE PROCESS

01 Arrange a pre-approved loan

Looking for a new property but not sure where to start? At Keystone Home Loans, we can help you get pre-approved for a loan, giving you a clear picture of your budget and helping you move quickly when you find a property you love. Pre-approval not only gives you peace of mind but also puts you in a stronger negotiating position, as sellers will see you as a serious, ready buyer. And don’t forget, even with pre-approval, having a subject-to-finance clause in your sale contract is always a smart protection. Reach out today, and let’s get you ready to make your next move with confidence!

02 Finding your property

Finding the right property takes careful research and planning. When you’re on the hunt, it’s important to look into property prices in the area, potential for capital growth, and upcoming infrastructure projects like new roads, public transport, schools, and shopping centers. If you’re not familiar with the area’s property values, consider getting a full valuation from a registered valuer to help guide your decision.

03 Make an offer & sign a contract

Once you’ve found your ideal property, it’s time to make an offer and sign the Contract of Sale. Whether you’re buying at auction or negotiating a listing, the contract will outline the selling price along with any terms and conditions. Be sure to include important conditions such as subject to lender approval, a building inspection report, and a pest inspection.The time between signing the Contract of Sale and settlement—when the property becomes legally yours—is usually around six weeks, though it may be shorter in some states like Queensland. Keep in mind that even with pre-approval, your lender will still need to conduct a property valuation before giving final approval. If the valuation doesn’t meet the lender’s requirements, they may not approve the loan for that property.

04 Appoint a conveyancer

Appointing a conveyancer is an essential step in completing your property purchase. A conveyancer or solicitor will handle all the legal aspects of the sale on your behalf. They’ll ensure that all rates and taxes have been paid, verify land use and building approvals, and arrange any necessary searches. They can also assist with coordinating property inspections.On settlement day, your conveyancer will confirm that the correct amount of money has been transferred from your lender to the seller, and that all fees, such as Stamp Duty, have been paid. Once everything is in order, you’ll take legal ownership of your new property.

05 Pay a deposit

Once the Contract of Sale is signed by both parties, you’ll be required to pay a deposit. Since your home loan won’t be available at this stage, the deposit will need to come from your savings or another source. In some cases, you might also be able to arrange a deposit bond, which serves as a guarantee until settlement.The time between signing the Contract of Sale and settlement—when the property becomes legally yours—is typically around six weeks, though it can be shorter in some states like Queensland. Remember, even if you have a pre-approved loan, your lender will still need to conduct a valuation of the property before providing full approval. If the valuation doesn’t meet the lender’s criteria, they may not approve the loan for that property.

06 Cooling off period

If you didn’t buy your property at auction, you may have a cooling-off period after signing the Contract of Sale. This allows you a window of time to cancel the contract, though there might be a small penalty involved. Keep in mind that cooling-off periods don’t apply in all states, so it’s important to check with your state authority to understand your rights.On settlement day, your conveyancer will ensure the correct amount of money is transferred from your lender to the seller, and that all associated fees, such as Stamp Duty, are paid. Once everything is in order, you’ll officially take legal ownership of your property.

07 Unconditional contracts

Be very cautious when signing an unconditional contract or bidding at an auction, especially if you’re unsure about securing financing or whether the property is the right fit for you. An unconditional contract means you’re committed to the purchase without conditions, such as financing approval, so it’s important to be confident in your decision. We always recommend seeking legal advice before signing a sale contract or bidding at an auction. Having professional guidance can ensure you fully understand your obligations and protect your interests throughout the process.

FAQs

Frequently asked general questions

Why should I use a mortgage broker?

As mortgage brokers, we are not tied down to just using one bank or lender, we negotiate with over 50. This means that we can provide you more options to get you a better deal and find the product that is right for you. Every bank and lender also has different requirements for their lending so if you don’t fit the criteria of one bank we will continue searching to find you a solution.

What are the different types of mortgages?

Most banks will offer you the option of having a variable or fixed rate. A variable rate will fluctuate as interest rates change whereas a fixed rate is locked in for a certain period of time. To talk more about which option is best for you, contact us today.

What is a pre-approval and do I need one?

A pre-approval is where a bank will offer you conditional finance approval. This means you are approved subject to a number of conditions that the bank or lender will set. Pre-approvals usually only last for a short period of time, however in the current market it can be a game-changer when negotiating a purchase contract as the real estate agent knows you are a serious buyer who is almost ready to go. While a pre-approval is not essential, it is certainly an advantage.

How much can I borrow?

It is important to know how much you can afford to borrow based on your financial situation before you begin looking so that you can set your budget and be realistic in your goals. To explore what your borrowing capacity would be, contact us today. Alternatively if you aren’t ready to borrow just yet, you can start to use our online calculators to help you start to get an idea of what you can look to do.

Where is Keystone Home Loans located?

Keystone Home Loans is located in Wolli Creek on the Southern of the Sydney. Despite being Sydney based, we are highly experience in assisting customers nationwide.