Buying a house is going to be one of the largest but most exciting things you do ever get to do. It might seem scary, and a bit overwhelming at first, but Mortgage Mates is here to help you understand the process and take the steps you need to take to co-own a home together.
We know that buying a house with a ‘Stranger’ is new and different, and possibly not the way you thought you would buy a home when you were growing up. But the rest of the process, and the impact owning a home has for you will be exactly the same as buying a house on your own, or with a family member, partner or friend!
To get the ball rolling you need to decide what type of property to go for, and start looking. It may take some time before you find the right place, and things you think you may want, may be different once you start looking at houses together. Consider the location, style and of course price of the properties you are looking at. If you are considering a strata home, or an apartment, look at any additional costs that may come with fees and associated extras with the property.
The first question to ask is whether you and your Mate want to build, or buy. Are you both going to live in the property, and if so what do you both need to make that work. Depending on which option you chose, will vary the time lines and processes involved.
For the most part, we will be focusing on when you buy a property together, but if you would like us to do a build version too- just send us a message and we will get writing that up for you.
As you start looking at houses, you should also start checking that your finances match your housing needs. The cost of buying a property comes with some hidden extras, such as fees, inspections and stamp duty. Not only do you need to pay for the deposit and organise the mortgage, you also need to manage the other costs associated with buying your home.
To make the process easier you can apply for Pre-Approval of your loan, which means you know before you make an offer, that you qualify for the mortgage you need for that house. There are lots of mortgage products out there, with different pro’s and con’s. Speak to banks and mortgage brokers to find the one that works for you. http://www.mortgagemates.com.au has links to a number of providers who offer specialised mortgages specific to co-owners. Use our ‘What’s Next’ page to start this process.
Buy the house! Again, the process will vary depending on the type of house purchase you are making. In Australia most homes are sold either via private sale or auction. In this instance we are talking about private sales but there are plenty of websites who offer specialised information on auctions and buying this way so we can add some information on this later on if you think this may be useful.
Provide the seller with a conditional offer. You can state the amount you are willing to spend on the property (this can be less than the seller is asking for) and make it conditional to finance and pest/other building inspections. Speak to your Real Estate Agent about what checks are needed and how these can be organised. This means you can be confident that the house you are buying meets the needs you have, and should prevent any surprises popping up later down the track.
Depending on where you are based in Australia, you may qualify for an exemption to Stamp Duty if your house is under a certain amount, or you may qualify for a First Home Buyer Grant. Your mortgage advisor should be assisting you with these things as you progress through the buying process. Make sure you ask questions of both the Real Estate Agent, and your Mortgage advisor so you feel clear and comfortable every step of the way!
Once everything is organised, you and the seller agree the settlement period. This often takes between 30 and 90 days and is the time you both have to get everything in order. Once the time period has ended the finance will need to be paid in full and the seller will need to have vacated the property.
Move in! You have done it! You have used an innovative way to own your home. Now is the time to enjoy being a home owner and creating your new community. Use the moving in period to put your stamp on the place, and with your Mate plan how the next few years are going to look for you as Mortgage Mates!