If you are looking to buy a home you will likely need to know all about the home buying and mortgage application process. Getting to know the process inside out will help ensure there are as few issues as possible along the way, which will reduce the chances of stressful delays.

Find Out How Much You Can Borrow

One of the first things you should do is contact your bank or mortgage broker to find out how much money you can borrow. Add this amount to the savings you intend to use to buy your home, and you will know the maximum amount that you can spend.

Be sure to factor in fees and charges, stamp duty, and any other amounts you will have to pay other than the price of the property you will buy. Once you have figured out how much you can spend on your home, you can search for a property.

Get Pre-Approval

You might want to get pre-approved for a mortgage before you put an offer on the property you like. To do this, your mortgage broker will need documents that verify your income, identity etc.

You will have to complete a home loan application form and it will be sent to the lender for approval. If approved, you can be confident that you will be able to obtain the finance you need on the property you like, subject to valuation. The pre-approval status will only last for a few months. If it expires you may need to seek pre-approval again if you are still looking for a property to buy.

Get the Property Valued

Once you have had an offer on a property accepted, you will need to get it valued by a professional surveyor. This is done to ensure the lender that they aren’t lending more money to you than the property is actually worth.

If you are overpaying on the property – in the surveyor’s opinion – the lender might not approve the mortgage. If the surveyor believes you are paying a fair price, you should receive full approval for the mortgage from your lender.

Full Approval

If your survey comes back positive, and all costs have been met, you should receive full approval from your lender. After this, you will receive a letter of offer. Be sure to check the letter thoroughly to make sure all details are accurate. Remember – your mortgage may well be the biggest finance product you ever have so any mistakes can be costly.

Settlement

After all of the above steps have occurred, the mortgage can be settled. Your solicitor will receive the funds from the lender and will pass them on to the seller’s solicitor. The funds will be added to any deposit money you have contributed in order to pay the seller the price you previously agreed to pay for the property.
Time to Move In

Once all the legal work has been finalised and ownership of the property has been transferred to you, it will be time to move in and enjoy your new home. As you can see, the home buying and mortgage application process is long and arduous, so be sure to settle into your home for as long as possible before moving again.

Author Bio: Speak to a Brisbane Mortgage Broker for advice on your home loan needs if you live in the Brisbane area. Contact us at http://www.moneynet.com.au/ today http://www.moneynet.com.au/

Category: Finances
Keywords: brisbane mortgage broker, mortgage brokers