Congratulations on finding your perfect property! Now comes the exciting part - signing the contract. However, before you put pen to paper, there are crucial aspects you should consider to ensure a smooth and protected home buying experience. At Private Finance Brokers, we're here to offer you expert advice and guidance throughout this journey. Our commitment to your success goes beyond financing – we also want to ensure you have access to trusted professionals who can support you every step of the way.
1) Prioritise Contract Review Before Signing
A thorough legal review is essential before you sign the contract. Your solicitor will carefully examine the terms, uncover any hidden pitfalls, and ensure your interests are protected. We've partnered with a network of trusted solicitors and conveyancers, offering discounts exclusively to Private Finance Broking clients. These trusted partners can assist you through this process, guiding you through complex clauses and offering valuable insights.
2) Building and Pest Inspection - A Must-Have Clause
Protect your investment with a 7-14 day building and pest inspection clause in the contract. This time frame will give you ample time to find an available inspector who can conduct a comprehensive assessment of the property's condition, helping you make an informed decision. At Private Finance Brokers, we understand the importance of a thorough inspection, and the impact this has on your negotiations, which is why we have trusted partners in the building and pest inspection industry. Our partners offer discounted services to our clients, providing you with the assurance that your potential new home has been thoroughly inspected by experts.
3) Allow Ample Time for Finance Approval
When it comes to securing your new home, having your finances in order is paramount. For all our clients, we recommend obtaining a pre-approval, which sets the foundation for a smooth buying journey. For auction clients, a pre-approval is a crucial step to take as it gives you the confidence that your loan will be approved subject to a satisfactory valuation.
For private treaty clients, who have the option to include a finance clause in the contract, we advise signing a contract with 14 days if finance is pre-approved. If finance is not pre-approved, then a minimum of 21 days is recommended. This timeframe allows the bank sufficient time to value the property and progress a loan from conditionally approved to formally approved. It's a strategic move to ensure you have all your financial ducks in a row before sealing the deal.
4) Deposit Options - Negotiate for Flexibility
Now, let's talk about deposit options. While a deposit is not obligatory, it can significantly enhance the appeal of your contract. The most common deposit scenario is $1,000 at contract signing, with the balance of 5% or 10% payable upon unconditional finance. However, many investors are leveraging their equity to finance the purchase and may prefer a nominal deposit, sometimes as low as $1,000 in total. It's important to note that if the buyer is borrowing 100% of the purchase price, any deposit paid will be reimbursed at settlement in the form of "surplus funds." We recommend discussing this with your conveyancer or legal representative for more details on negotiating deposit terms that suit your circumstances.
5) Recommended Settlement Dates
Settlement dates are an essential consideration when signing a contract. A suitable settlement period allows for smoother logistics and more time to arrange the necessary paperwork and finances. We recommend a settlement period of 30 days, but you may stretch this out to 90 days if required. These timeframes are what the vendor/industry are expecting, allowing for smooth logistics and sufficient time to arrange the necessary paperwork and settlement preparations. However, if you need a faster settlement, our expert team can assist in expediting the process to suit your needs.
6) Attention to Detail Matters
Before signing the contract, ensure all necessary details are included accurately. Check that the contract is signed and dated by all parties involved and includes the contact details of the respective solicitors. Take the time to carefully review the contract for any errors or omissions. Verify that names are correctly spelled, and any middle names or preferred names are accounted for. Attention to detail at this stage can save you from potential complications & delays later on.
Conclusion
Signing a contract to purchase your new home is an exciting milestone. With the right preparations and expert guidance, you can navigate this process with confidence. Engage your solicitor to understand the legal ramifications, take advantage of our "trusted partners" page for access to reliable and discounted solicitors, conveyancers, building, and pest inspectors.
At Private Finance Brokers, we're committed to helping you achieve your property dreams. Contact us today to embark on this exciting journey!
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