There is endless advice available to guide you through the home loan application and pre-approval processes. But what about after your home loan is approved? To help fledgling homebuyers we've put together a quick guide on what to expect.
After home loan approval: Documents and conveyancing
After your home loan approval you will usually receive the following documents from your mortgage advisor or lender:
- Letter of Offer: this includes the details of your loan – closely inspect this with your conveyancer.
- Mortgage document: lodged by your lender to your state government to register your mortgage.
- Disbursement and settlement forms: allows your lender to withdraw all funds to settle.
- Direct loan payment form – complete if you wish to make automatic payments towards your mortgage.
Hiring a conveyancer could cost $900 to $2,200, the Australian Institute of Conveyancers states. That will be money well spent as their expertise will help you ensure your settlement and loan documentation is all suited to you.
The settlement process
After settlement you'll be responsible for paying your stamp duty – the title won't be transferred until you've done so.
After your mortgage documents have been completed and your home loan approved it's time to settle and take ownership of the property. During this stage your conveyancer's services will be particularly useful as they will assist you in checking and signing the contract of sale.
They may also help when calculating how much you'll need to cover expenses, including stamp duty, mortgage insurance and any other fees and charges. Before you sign be sure that you've had the chance to complete a final inspection of the property yourself – checking all appliances and its general state of repair, or hiring a professional building inspector.
Lastly, you'll want to organise building and contents insurance to start directly after the purchase date to cover all your bases.
Collecting keys and moving in
After settlement you'll have to pay your stamp duty – the title won't be transferred until you've done so. Also keep council rates and fees in mind, as you'll be responsible for these after settlement.
When all your ducks are in a row, it's time to collect the keys at the agreed upon time and finally walk through the front doors of your new home. Here at Advantage Finance we pride ourselves on guiding our clients from application right through to the moment you move in and beyond.
To make your journey is as straightforward as possible get in touch today for a no obligation chat with a local mortgage advisor.