Part 2: Organising Finance
To demonstrate that you are serious you will be asked to put down a deposit on the property. There are two main deposits which happen:
- Holding Deposit
A refundable holding deposit (usually $500) stops the agent from showing new buyers through the house. It does not stop other buyers from making offers on the property.
- Cooling Off Contract/Deposit
A cooling off contract is non-refundable, however it takes the property off the market for the cooling off period (usually 0.25% of the purchase price). The more time the better so we suggest 10 days up front.
At this point, we and the conveyancer need to start getting your loan approved. To do this we will need a copy of the front page of the contract as well as the property details.
We then supply the lender with the purchase information and the required loan amount. You may need to supply up to date payslips and bank statements if the Pre Approval requires it.
We work closely with the lender to get your loan conditionally approved. This means that the bank has approved your loan subject to certain conditions which your conveyancer will review with you. This typically takes around ten days.
At the same time the conveyancer will start the various searches and if appropriate a Pest and Building Report. These reports are not required however depending on the age of the property can be worthwhile.