Step-by-Step Guide to Buying a Home
Owning a home, especially your first, is certainly a big deal, it will likely be one of the biggest investments you will make. Therefore, in seeking to acquire a home, it is wise to seek guidance from early and to follow the recommended steps, in an effort to ensure satisfaction ‘all the way home’.
VMBS Steps to Buying your Home
- Your first step should be to find out how much money you can afford to borrow. Your VMBS Credit Officer will be able to give you a good estimate of this.
- Examine the sort of mortgage arrangements that would best suit you. While all mortgages essentially work the same way – you borrow a lump sum of money to buy a property, then you repay the loan through monthly payments over a period of many years – the real difference is the options offered within the various mortgage plans.
- Find out the details of a number of expenses, which will soon become due. These include stamp duty, legal fees, application fee, surveyor’s report fee and a number of other lesser charges.
Generally up to 13 percent of the purchase price should be needed to cover all the related expenses. These fees are referred to as closing costs.
- If you have not already done so, it is now time to locate the home you wish to buy. This is more a consideration of where you want and can afford to live, the kind of amenities and surrounding infrastructure, its resale potential; as well as the space and location of areas for activities like gardening and leisure.
- Once you have decided on a property, the next step is the really big one, but usually it’s the most satisfying. It is now time to make the property yours!
Discuss the sales agreement with your attorney who will tackle the legal work while the lending institution involved deals with the mortgage arrangements, to tie up a deal.
- When your offer has been accepted, with things like valuation and surveying of the property done, it is time for your attorney and the seller’s attorney to settle on the contents of the contracts to be exchanged, including the very important fine prints.
- Now you may lodge your deposit with the lending institution (mortgagee) or otherwise, as directed.
- All being well, with the contract exchange and your attorney having tied up any legal loose ends, including the transfer of the balance of the purchase price to the seller, you can then move into your new home.