The Home Purchase Process
PUBLISHED 21 MAY 2014
Home Purchase Process:
The factors that are taken into account when hunting for a new property are: Personal preferences, the neighbourhood and advice from various parties.
Your real estate agent can assist and guide with your house hunting, simplifying the process greatly.
Some might find what they want immediately or it can take a while.
Here follows a general outline of the process the Home Purchase takes:
The Buyer makes an Offer to Purchase on a property:
After evaluating various properties on offer, documents and sales information to your disposal and discussing it with your agent, you make an offer to the seller. The seller may accept or might come back with a counter offer, this might involve some to and fro until the seller accepts. The buyer can also reach a point where they decide they cannot make a higher offer.
The Seller Accepts your Offer to Purchase:
Assuming all parties involved are happy with the terms, they have entered into a sale and purchase agreement.
Buyer puts up the deposit:
To show your sincere intent to purchase the property, you put down a deposit on the property. The better your deposit, the lower your mortgage/bond and the bank will look at your affordability more favourably. This deposit is paid to the Conveyancing or Transfer Attorneys and will count towards your down payment.
All funds, including the deposit will be held in the Trust account until the deal is finalized. From here the funds are distributed to the lender, mortgage/bond broker, insurer, real estate agents and any other service that was utilized/rendered.
Should you have done a bond pre-approval, this will be a simple straightforward process. If you did not, the Bond application starts here from scratch.
The lending Institution inspects property history and asks for a valuation:
Standard procedure by the financial institution is to gather information on the property before approving the loan. This could have ramifications regarding property value, pricing, etc. There might also be technical difficulties which the deed search brings to everyone's attention which would need to be resolved.
Once the inspection is finalized and approved, the deed searches is done and everything is in place to proceed, the finalization of the contract can be started.
All Procedures are met and Bond approved:
When all the documentation requirements are met and the bond approved the contract is finalized.
Planning to move on:
When all the documentation is signed, sealed and delivered, you can finally plan your move and smile!