Nowadays the desire to buy a place of your own has become a question of security – mental, physical, emotional, and most importantly, financial. Because buying a house is one of the biggest financial investments of your life. However, it is good to be afraid as long it works positively but it is absolutely unnecessary to worry when there is no reason behind it.
In case you don’t know much about the legal formalities to buy the property, you can take the help of Conveyancers. He can help you throughout the whole property buying process and will handle all the legal aspects of buying and selling property for you. For instance, if you are looking for the Conveyancing services in Upper Mt. Gravatt, you can talk to multiple conveyancers before choosing one to oversee your settlement process.
Here is the list of the legal challenges that property buyers should be aware of before buying a house.
- Mortgage Pre Approval
This is the foremost thing you should do, before even starting looking for a property or home. Mortgage pre-approval will increase the likelihood of a seller accepting your offer. Because they will know that you will be able to pay the required amount.
The preapproval process is quite easy. The lender will ask you for your personal details, income proof, and run a credit report. Then you have to tell the lender about the cash down payment you are willing to put down. After this, he will provide you a legal letter stating your mortgage pre-approval for a specific time period.
It should be noted that pre-approval does not mean you are guaranteed a loan, it just shows that you are initially eligible to get a loan.
- Purchase Offer
The next thing you need to do is to find a suitable house for you and put in a purchase offer. This is a very crucial task, your real estate conveyancer or solicitor can assist you to complete this formality. Be careful about how much you want to offer. Take a market survey before deciding the final purchase amount. Since, sometimes sellers ask for higher than the actual ongoing property rates, although, in some demanding markets, you may have to offer more.
The seller will review your offer letter and may counter it, reject it, or accept it. If the seller changes any of the conditions in the purchase offer, then your solicitor should review those amendments in a glance.
Generally, the purchase offer is completed with earnest money in escrow. This money reflects your seriousness about wanting to buy the house. If you back out of the deal, the seller has the right to keep the earnest money, unless you do not have any valid reason to cancel the deal.
- Mortgage Approval
Once the seller has accepted your purchase offer, you will need to complete the loan approval process. He/She will ask you for some more documents in addition to other documents provided for pre-approval.
- Home Inspection
Almost every home buying and selling process includes home inspection provision before the contract is finalized. So, confirm it prior that your attorney has inserted a clause about this in your contract. This gives you a chance to inspect the house before purchasing it with the help of a home inspector. If he finds some problems, you can ask the seller for repair. And if he is ready to make repairs, you can counter the contract with a lower purchase price.
- Consider Issues with Tenants
Many people bought the properties with investment purposes and subject to existing tenants. Ensure whether the full details of the tenants on contract papers are verified.
- Verify the Property in terms of Encumbrances
The next step is to verify the property in terms of every aspect as to whether it faces any kind of governmental action or encumbrances, litigation, or charges. If it falls under such circumstances, then you may have problems in the future.
- Title Insurance
You are then required to purchase Title insurance for the property as it is required by the mortgage company. This will ensure your ownership rights.
- Mortgage Closing
Once you provided all the required documents to the lender, your loan settlement or closing will take place. Your conveyancer should accompany you until the closing to ensure that you have signed all the important documents and reviewed all the financial details.
After completing the paperwork you have to file all the documents with the county. This will be handled by your attorney.
You can easily find comprehensive, affordable, and fast conveyancers on the internet. Here are some of the best Conveyancing agencies in Upper Mt. Gravatt includes Results Conveyancing, Elliott & Harvey Lawyers, Andersons Solicitors, and Madsen Law.