Home loan process
Getting a home loan can seem complex, even if you’ve bought property before. Here are the most common steps from application to settlement.
Our beginners guide to buying your first home
Buying your first home is often an exciting, but also overwhelming experience filled with challenges and decisions that need to be made along the way. Whatever your needs might be we’re here for you every step of your journey to make your big purchase as seamless as possible.
Apply for conditional pre-approval
Applying for pre-approval is your ticket to house-hunting with confidence. It gives you a clear indication of how much you can afford so you can make an offer when the right property comes along.
- Book an appointment by calling Hejaz Financial Services who are here to walk you through the home loan process and to apply for pre-approval.
- Once you’ve received pre-approval, it’s time to go search for your property.
Estimated time conditional pre-approval is valid for: 6 months
Apply for a home loan once you ﬁnd your property
Once your offer on a property is accepted, you can apply for a formal home loan online, over the phone or in-person with help from our Finance Consultants. They will also let you know which documents are required to formalize your loan approval.
- Let your Finance Consultant know you have found your property.
- Gather all the necessary documents required by your Finance Consultant.
- Find a conveyancer or solicitor to review your contract and other legal documents to be sure you understand the conditions of the sale.
Secure your property
To secure your property, both buyer and seller need to sign the Contract of Sale, which conﬁrms selling price, settlement terms and other conditions for the sale.
To secure your property, you’ll likely need to do the following:
- Consider carrying out a property and pest inspection to avoid bad surprises.
- Check if there’s a subject to finance clause in the contract (preferred).
- Sign the Contract of Sale provided to you by the seller or real estate agent.
Your home loan’s been approved, so it’s time to sign
Once your home loan application and documents have been submitted, we’ll review them and complete any necessary checks. We’ll then let you know if your loan is approved and provide your loan offer documents.
- Pay the deposit (usually 5 – 10% of the property price).
- Complete stamp duty forms (if applicable) – your conveyancer or solicitor will organize this.
- Review, sign and return your home loan documents.
- Look into home insurance options prior to settlement.
Settle & move in
Settlement is the formal completion of the property purchase, involving you, the seller, and your respective representatives. Generally, at settlement, your deposit is released to the seller, and we pay the agreed loan amount on your behalf, including any settlement adjustments. These include taxes, rates and other services that have been paid in advance by the seller. Once settlement has taken place, your conveyancer or solicitor will notify you, and all that’s left to do is for you to pick up the keys!
- Arrange a ﬁnal inspection with the seller or their real estate agent prior to settlement day.
- your ﬁnal contribution. This may account for taxes and duties, as well as any adjustments paid by the seller. Ensure you have funds to pay any shortfall on settlement day.
- After settlement, pick up your keys from the seller’s real estate agent.
You’ve bought your home
Each home buying journey is different. Your Home Lending Specialist is there to guide you through these steps and help with anything specific to your situation.
Should I get a conditional approval?
Obtaining a conditional approval is a great way of getting an actual estimate as to how much you can borrow and find out whether you will be approved for a loan. It is also a great way of showing real estate agents that you’re a serious buyer and can speed up the finance application process once you have signed the contract of sale.
How much deposit do I need?
The minimum home loan deposit you should have with Hejaz is at least 10% of the purchase price of the property. Due to credit laws in Australia, Lenders Mortgage Insurance will apply if your deposit is less than 20%, which is a one-off fee that covers your lender against loss if you default on your repayments. This fee is added to your loan amount and allows you to borrow more than 80% of the property value for home loans.
Am I entitled to the first home owners grant?
Government grants are a great way to receive financial assistance when buying your first home. However, depending on where you buy, your eligibility requirements for your first home owners grant and the amount you may be entitled to varies from state to state.
What grants are available to me?
For more information about grants available to first home owners, feel free to use the power of google:
- First home owners grants
- Homebuilders grant (if you are building your first home).
Home buying made easy
Skip the stress of not knowing, and get an expert in your corner to arm you with the essentials.