Steps in purchasing your first home (more specifically first apartment)

Goals completed: One

For me the process has been quite an ordeal because the solicitor didn't talk to the real estate who didn't talk to the bank and no one talked to me. So unless you already know all the in's and out's of the whole process there is a lot of stress involved. And like me you end up drinking by yourself wondering why no one ever told you what to expect. Probably because my parents went through this 20 years ago and have forgotten or else they would have actually told me what to expect. I'm not going to babble on about the part where you need to figure out how much money you can afford to repay monthly, what your price range is, looking for a place to make an offer on. I'm going to start from what happens when you make an offer.

Making an offer

• How much will you pay as your initial deposit? And make a note of when you need to pay it by.
  
• How long will you require to get your finance approved? If it happens quick it will be 7 days, but to be safe you should have at least 14 days. 21 days if the seller isn't in a rush, because there's a lot of peace of mind involved in having the deadline further away. If you set a deadline and you don't get your approval by then the seller can cancel the contract. This process may require you to get your identification verified and get all your finances in order showing bank statements and pay slips.
• How long will you require for settlement? Usually 30 days, unless you already have finance approved it's best to at least have 30 days, but it can be more.
• Do you need building and pest inspections? Unless you have serious doubts there is not a lot one of these inspections will tell you. But then again this will very much depend on the building. You will probably want to take note of chances of termites, your balcony stability, exposed circuits, holes in walls. Things that might make the place unlivable.
  

Once your offer is accepted

• Call your bank straight away and fill out the loan application, get that ball rolling as soon as possible. This process may require you to have a contract of sale, copies of bank statements and identification verification.
  
• Contact your solicitor, authorise for them to perform the searches. You may need to pay for the searches as you go, or they will be paid in bulk upon settlement.

Once finance is approved

• You will need to sign the mortgage documents, if you go with ING direct as I did you will need to have a JP or solicitor witness you signing them. Then your contract of sale will go unconditional.
• If you go with ING direct you will also need to organise your First Home Owners Grant form as soon as possible because they will not set a settlement time until they have get that confirmation. Most other banks will probably just require you to sign the form and you're set.
• Your solicitor will ask you to fill out a first home owners transfer duty concession, which is probably the most straight forward form I had to fill out.
• Organise your bank cheques (or be prepared to organise them) for: the remaining deposit payable [the bank only pays the mortgage amount (which includes all their fees) and you should have already paid your initial deposit] and solicitor fees. Unless you go with Westpac or NAB then they will organise the chques for you; you will want to ask your bank to make sure. The total cost of purchase will be adjusted for corporate fees, council rates etc that the seller has already paid. You will need to get these cheques to the solicitor before settlement.
• Buy insurance. If the property will not be occupied immediately and there is a tenant in place you will need landlords insurance. Then you will need contents insurance. You should have been shown a certificate of currency stating that the building is insured, including public liability insurance.
• Buy alcohol - either to celebrate or to dull the nerves a bit.