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We recommend a pre-approval in most cases. The pre-approval application will have the lender checking your credit history and ability to service the loan to make sure that there are not any problems that will affect your chances of obtaining finance.

The pre-approval will be based on set parameters relating to a maximum loan amount and maximum purchase price.

We recommend that if applying for a pre-approval that you apply for only one. Multiple recordings of loan applications on your credit report may create concerns from lenders as to why you are applying to multiple institutions, i.e. have you been declined by the previous bank(s)?

A pre-approval doesnt guarantee automatic approval of finance. Remember, the bank hasnt seen or accepted the property yet. Therefore, it is recommended that you still have the contract noted subject to finance. This gives you protection and a way out of the contract, should the bank find the property unacceptable to be used as security for a loan.

Finstras involvement in the transaction

We work with the applicants to guarantee the finance process is as easy as possible.

We liaise with the bank to ensure that the processing of the application is happening in a timely manner as per contract stipulation for finance dates etc.

We liaise with the clients on an on-going basis to keep them fully informed on how their application is proceeding.

We act in conjunction with your solicitor/conveyancer and real estate agent to ensure that all of the required information is made available to the bank or their solicitors, to satisfy the lending institutions requirements.

We work with the solicitor/conveyancer to ensure that the settlement proceeds through smoothly.

Buying a property via Private sale

When looking at properties with an agent, make it very clear to the agent that you have a specific amount of cash and/or a 5%, 10% or more available as deposit.

The current laws state that a real estate agent cannot accept an offer on a property until you have received an up to date Section 32 signed by the vendor(s)

To accept an offer, a real estate agent will be looking for a holding deposit of between $500 to $1,000, whilst you formalise your finance.

The contract in most cases can be made subject to (1) finance, (2) satisfactory property and pest inspections (3) any other clauses as suggested by your solicitor/conveyancer

Allow sufficient time in the finance clause to arrange the finance. Somewhere between 7 to 10 working days is normally required.

Make sure that you advise your finance consultant once your offer has been accepted. We will need a signed copy of the contract of sale and section 32, so that they can process your loan with the lender towards formal approval.

Once finance is formally approved, you then have to pay the remaining part of the deposit, less the holding deposit already paid.

The finance clause period also enables you to arrange for the property inspections, pest inspections etc. to be conducted. These are at your own cost. Once paid, please provide a copy of the receipt to your finance consultant.

The Section 32 is to be shown to your solicitor/conveyancer as soon as possible. They will check the document to make sure there arent any easements/covenants that will affect the property and hence make it unattractive/unviable to buy.

Most contracts will have a 3 day cooling off period, enabling you to pull out of the deal, if required for any reason.

Buying a property at Auction

The purchasing of a property at an Auction is arranged on an unconditional basis, therefore you are unable to make the contract subject to finance, inspections, etc.

General requirements for an auction are that you must have access to a 10% deposit on the day of the auction.

If you have less than 10% available, let the real estate agent know this a few days before the auction to see if this is acceptable to the current vendor.

Offers prior to an auction may be accepted, however be prepared, as you may not be able to make the contract subject to finance, inspections etc.

If you are putting in an offer on a property 3 days before or after a scheduled auction date, the contract will be subject to auction conditions and will therefore be unconditional.

Make sure that you advise your finance consultant as soon as possible that your offer has been accepted. We will immediately need a signed copy of the contract of sale and section 32, so that we can process your loan with the lender towards formal approval.

Contract of Sale issues

Make sure that your full names are recorded on the contract

Make sure the GST is/isnt crossed. Check with your solicitor/conveyancer if any concerns.

Check the sums to make sure they add up.

Check the dates for finance approval.

Check the settlement terms/dates are acceptable.

Look for a longer settlement term with an option to bring forward. If you miss a settlement date, the vendor is entitled to charge a penalty based on a fixed percentage per day. You can still finalise the purchase in a shorter time frame if both yourself and the vendor agree.

Generally if you cant complete the settlement, within a specified time after the initial settlement date has expired, the vendor may be entitled to take the property off the market, keep your deposit and sue for costs.

If you are looking to move in at settlement, make sure the property will be vacant possession and clear of any tenants.

Make sure that you receive a signed contract of sale by the vendors, confirming their acceptance of the conditions and agreement of the price.

Insurance - Important!
Once a contract of sale becomes unconditional, i.e. finance has been fully approved, the property/pest inspections have been completed and are satisfactory and you are about to pay the remaining part of the deposit, you should now consider arranging building insurance on the house/property.

If the property you are buying is not subject to a body corporate, it is recommended that you consider insuring the house, as there is no legal requirement for the vendor to maintain the insurance through to settlement. Because you have paid your deposit, you dont want the house to be damaged through no fault of your own before settlement

In addition to the banks own buildings insurance policies, we have negotiated special rates and features through Allianz. Please contact us for further details for the Allianz deal.

In addition to the house, you should also review your current insurance for yourself. This can be arranged to cover the mortgage only, or to provide additional benefits in the event of accidents, health issues etc., where you are unable to work for a period of time. Your finance consultant can arrange for an insurance representative to contact you at a convenient time to review your needs.

Mortgage Documents
It is important that as soon as you have received the loan documents that you read through and check to see if it is the same information, rates, fees, etc, that were quoted originally.. If you have any questions about the documents, contact our office for assistance.

Some institutions require you to sign the documents at their branches. (We will advise which banks this applies to.) Please ensure that you take 100 points of identification when attending the branch to sign the documents, e.g. Drivers Licence, birth certificate, current passport, Medicare card.

You also have the opportunity of taking the loan documents/mortgages to your solicitor/conveyancer to have the paperwork checked and explained.

To ensure that there no delays, documents are to be returned to the bank, or their solicitor (if applicable) as soon as possible. It is important to make sure all items including a copy of the buildings/body corporate insurance policy (if requested) are sent back at the same time.

When the bank or their solicitor receives the signed documents, they will check to see if they have all been signed and witnessed correctly and all required items have been returned. If all of the items have been returned, the file is then certified ready for settlement and your solicitor/conveyancer is notified that the file is ready to be booked in.

During this time our office will be in regular contact with updates as they occur.

Settlement - Completing the Purchase

Your solicitor/conveyancer will arrange to book in the settlement at a specific time.

Ensure that you have contacted the relevant Electricity, Gas and Telephone companies to have these services connected on the day of settlement in your own name.

Approximately a week before settlement arrange a final inspection with the real estate agent to check to see if the property is in the same condition as signed in the contract. If you have any concerns, immediately contact your solicitor/conveyancer and discuss any issues/concerns that you have.

A few days before settlement, your solicitor/conveyancer will contact you and advise of what funds if/any, you need to contribute for the settlement. You will need to arrange bank cheque(s) as instructed to be delivered to your solicitor/conveyancer a day or two before settlement.

On the day of settlement, your solicitor/conveyancer and the bank will attend the settlement with the vendors representative and hand over the required funds.

Shortly thereafter, your solicitor/conveyancer will contact you to advise that settlement has gone though and you can collect the keys from the real estate agency that sold you the property.

Ring the real estate agency first to let them know you are coming to collect the keys, as they may not be aware that the settlement had gone through.

Move in and enjoy!

Post Settlement
Consider changing the locks.

Our office and the bank will both write to you confirm settlement has been processed. The bank will confirm when the first payment will be due.

Arrange to have your mail redirected from your old address by Australia Post.

Update your contact details for all business that you deal with such as Banks, insurance companies etc so that you will continue to receive correspondence.