If you’ve spent much of your time thinking about settlements lately, then there is a high possibility that you are near the final step in buying your home!
Which is awesome news if such is the case, and as you bask in the thought of home ownership
Do take the time to go over the information below, just so you know what is to be expected in the settlement process.
1. Time Frame
The length of the settlement process can take anywhere between 30 and 90 days, and can vary from state to state.
2. Getting Approval
Getting approval “in principle” means that your application to buy a house for a certain amount has been approved. However you will need a final approval in order to be able to purchase the property.
3. Get the property … yep the one you’ve had your eyes on for ages
This is the part where you will make an offer on your new home, for the amount you were approved for.
4. Employ the services of a conveyancer
It is beneficial to enlist the services of a conveyancer or solicitor, as they will work on your behalf, dealing with not only the seller’s conveyancer, but also your lender. In order to make sure that your needs are being met, and that you are adhering to all legal obligations.
5. Sign… Purchase… Pay!
In order to buy your property you will need to seal the deal (secure the loan) by signing the contract for your new house, and paying the deposit to your real estate agent.
6. Get Insurance
Once your purchase agreement is signed you become responsible for your new home, and it is wise that you insure your property so that you and your lender are protected. Your lender will ask you to provide evidence of insurance cover before settlement.
7. Get Final Approval
Your lender will review your documentation and the final loan amount, and then advise you of its approval (of your property), if successful.
8. ID Checks
You will need to confirm your identity with your lender, and will be asked to provide a photographic image of yourself, together with a copy of your photo identification.
9. Sign your home loan contract
It is important that you review your loan documents so that you are well informed, before signing your home loan contract, and returning the forms to your lender.
Your conveyancer will also be able to help you with any questions that may arise.
8. Final inspection
Your property will be handed over to you by your seller/agent, in the same condition as when it was first sold, and it is important that you diligently check the property’s structure and fittings, as well as locks and appliances in order to make sure that everything is orderly.
Do speak to your conveyancer to help you resolve any issues, if you find that anything is not in working order.
Your conveyancer will also help you arrange a “change of address notice”, in which the local council and various bodies are advised of the change of ownership.
9. Money Transfer (of settlement funds)
Your home loan will officially commence when your lender “draws down” on your loan (the lender debits the amount that is to be paid to the seller from your loan account, and your contribution to the purchase).
Other fees and charges (such as stamp duty) will also be transferred.
10. Being Informed about settlement
After the property’s settlement has taken place, your conveyancer will contact you confirming such details, and a final report of the settlement will be sent out to you.
It’s Finally Yours!
If the settlement has proceeded, and you haven’t already moved in, then now is time to stroll joyfully to your real estate agent as you pick up the keys to your new property. Congratulations!
Feel free to call Abacus Finance on 1300 268 686, or email us today!
Got a settlement query?
The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice