If you do not want to have your heart broken by losing your dream home to someone else, then make sure you are 100% ready to commit.
And getting ready does not start with 'swiping right’ on your perfect match – you first need to know what you can offer.
“Most people go straight to the portals and start looking for houses to buy,” says Grant Gavin, owner of RE/MAX Panache.
“They start dreaming about the property they want to buy and then, at some point, contact the agent.”
This, said Gavin, is often followed by a viewing in which they fall in love with something about the home.
“We walk through and feel like this could be the home of our dreams. We imagine raising our children in it. We fall in love with it on an emotional level.
“We get to the point of putting in an offer and then hope we get the bond.”
The wait to hear whether a bond application is successful can take up to 14 days, and all this time the dreams grow. So when the call comes saying the application is declined, heartbreak ensues.
“Imagine dreaming about your whole future in that home and imagining your children growing up there – it is like a rug being pulled out from under your feet.”
To avoid this, Gavin says the first step in the buying process is not to house hunt but to work out what you can afford and have a bond originator assist with this and gaining pre-approval.
“Once you have got that number, add to this the deposit amount you have saved up. Factor in transfer duty and then you know the price range you can look at.
“This will avoid so much emotional turmoil.”
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Aspiring home owners should also be ready for this new journey by having their paperwork ready for the bond application.
“There is a 21-day period for you to get your bond after putting in a written offer-to-purchase. After this, the sale will fall through so make sure you do not waste that time trying to only then get your documents together.”
For employed buyers the banks will require three-months bank statement, proof of income, and conduct a credit check. Self-employed buyers will need to have their business financial statements ready, even if they are buying the property in their personal capacity.
“As soon as the bank sees that you own a business, they will ask for those financials, so claiming that you get paid a salary from the business will not work” he says, emphasising that 21 days goes by quickly if one still has to get their documents in order.
“And if the seller gets a back-up offer during that time, he can accept it as soon as the 21-day period is up.”
Start looking for the home of your dreams here