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Find out what’s involved in taking out a loan, from start to finish. Of course, once you engage Shore Financial, our experienced team of mortgage specialists are on hand to guide you through every step of this process so you can get approved for your new home loan sooner.
Firstly, we will meet with you to get a detailed understanding of your financial position to be able to assess and present the most appropriate and competitive options available to you. We search through hundreds of home loans to find one that’s most suitable and accommodating. By assessing your income, assets and liabilities, we calculate your borrowing power, work out repayments, provide an estimate of all costs and answer any questions you may have.
If you haven’t started your property search, or are still looking, a pre-approval is essential prior to making any serious offers on a particular property. It gives you a clear picture of what your spending limits are and gives you peace of mind that if you find a property that you are really interested in, you can move quickly to make an offer. It may put you in a stronger negotiating position than other potential buyers who don’t have a pre-approval or are still waiting for confirmation from a bank.
Make sure you do plenty of homework when you’re on the hunt for a new property. Research property prices in the area, potential capital growth and existing and planned infrastructure, such as roads, public transport, schools and shops. If you’re unfamiliar with property values in the area, your Shore Financial broker can organise property reports before you make a final decision. If you are uncomfortable or unfamiliar with the negotiating process, we can also put you in touch with an appropriate buyers’ agent.
Whether you buy property at auction or make an offer on a property for sale, your agreement with the vendor only becomes a legal commitment when both parties have signed a contract of sale.
This contract will confirm the selling price as well as any terms and conditions. Your commitment can be unconditional or sometimes can include a cooling off period and be subject to lender approval, or a building or pest inspection report.
Ask your Shore Financial broker to introduce you to a solicitor or conveyancer to check the conditions of the contract of sale. The conveyancer/solicitor will also check all rates and taxes have been paid, check land use or building approvals for the property and order any relevant searches. They may also help sort out any inspections. On settlement day, the conveyancer will check the correct amount of money has been transferred from your lender to the seller and all fees – such as stamp duty – are paid, so you can take legal ownership of the property.
A deposit is required once a contract of sale has been signed by both parties (this is sometimes called ‘exchanging contracts’). You won’t yet have access to your home loan, so your deposit will need to come from savings or elsewhere. You may also be able to arrange a deposit bond until settlement. The period from paying a deposit and signing a contract of sale to settlement, when the property becomes legally yours, is usually six weeks within New South Wales or 60-90 days in Victoria.
As new campaigns and offers are always being released, we will confirm that the bank which we have organised your pre-approval with is still the most competitive and appropriate.
Your Shore Financial broker will organise a bank valuation on the property that you are looking to purchase and will confirm it is a satisfactory security for the bank. At this stage, we will also confirm the structure of your loan with either fixed and/or variable portions as well as repayment terms to subsequently request a formal approval from the bank.
The bank will issue mortgage documentation which covers the exact terms and conditions of the loan agreement – including any upfront or ongoing fees as well as interest rates, repayment terms, loan term and offset accounts. The bank requires original signed documents usually at least seven days prior to settlement to process certification of the signed documentation.
The lender will advise your solicitor that the loan is ready for settlement and will liaise with the various counterparties to ensure settlement is scheduled.
Your solicitor will advise of any funds required to complete the transaction two to three days prior to the settlement date and your Shore Financial broker can arrange for funds to be drawn out of a designated bank account.
The service doesn’t end when your loan settles. Your Shore Financial broker will stay in touch to make sure your home loan is the right solution for your needs now and in the future as well as making sure you maintain a competitive loan package. If you need additional funds later for a renovation, wedding or family holiday, your Shore Financial broker can assist with accessing some equity.
We can also assist with changing repayment terms, restructuring between fixed and variable or simply renegotiating a better interest rate.
We encourage all our clients to keep in touch for any of their financial requirements. Whether you need a home loan, car loan, financial planning or insurance, we are here to help.
Levels 3 & 4, 153 Walker Street
North Sydney, 2060