Building & Lim Reports
What to know
When compared to the cost of buying a home and discovering major issues that need to be fixed, the amount you’ll spend on pre-emptive building and pest inspections seems insignificant. You cannot overestimate the importance of gaining a comprehensive understanding of the property you are about to buy – getting the right reports and inspections can be crucial. A building report will help identify any internal or structural problems that could otherwise cost you thousands of dollars to repair. Expert inspectors have professional indemnity insurance and can often discover defects that you may have missed. Importantly you must question the inspector if there is anything you are not comfortable with in the report, but overall it is not necessary to worry about every issue raised – it is their job to make a note of any concerns they come across, even the ones that have no substantial impact on the building or its worth.
It is entirely possible that the property has termite (white ant) infestation you’re not aware of, so a pest inspection report is crucial for peace of mind. Termites are generally more prevalent in warmer climates, but no geographical location is completely immune so it is worth taking the time and effort to discover if your favourite property is affected before you finalise your purchase.
Documentation You May Need
During this application process, you’ll be asked for several pieces of documentation. This includes showing that you have enough savings to cover the deposit on your property and other fees that may be applicable. If you are self-employed, you may be asked to show tax returns and other financial information from the past two years, while anyone who is employed will need to show evidence of their payslips
Making Your Purchase
Depending on whether you are planning to buy at auction or make an offer on a property, you’ll find there are some slight differences in the transaction process. If you are buying at auction, you will usually be required to pay a ten per cent deposit at the moment the hammer falls. Your deposit is then held in trust by the agent – and any interest earned is split between you and the vendor during the settlement process.
Processing Your Loan
At all stages of this process, it is important to ensure your lender remains informed – they will be able to process your loan more quickly if they are aware of all the details. This information includes the contact details of your solicitor or conveyancer, real estate agent and vendor, as well as a copy of the contract of sale. Once a valuation has been carried out and all the other documents have been received and processed, your lender will grant formal approval on your loan and the documents will be sent to you. At this time, you will need to sign these documents and return them. Your solicitor or conveyancer will then liaise with your lender until the loan settles.