You've found your dream home. Your loan is approved. What happens next? We shine a light on the settlement process and how home buyers can help it run smoothly.
There are few things more exciting than finding a home your love and receiving the green light for a loan. But after paying a deposit and exchanging contracts, an important process takes place to make the property yours.
Here's what you need to know.
Settlement typically spans six weeks. It's the time when your legal team kicks into action, completing all the paperwork to transfer ownership of the property into your name.
Your legal rep will meet with your lender and the seller's representative to sign and hand over documents and cheques. These documents are forwarded to the land titles office where you will be registered as the new owner.
Meanwhile, your lender will register the mortgage against the title. This remains in place until the loan is paid off. Your Mortgage Choice broker will continue to liaise with your lender, who will provide the funds to purchase the property or payout an existing loan.
Home buyers can streamline the process
The settlement period can seem like a waiting game, but plenty can be done to ensure settlement day runs smoothly.
First, set a date for a final inspection of the property. Draft a checklist because this is your final opportunity to ensure everything is working and in place as per the sales contract.
Check your finances
A few final transactions occur on settlement day, with the buyer and seller either paying adjustments or receiving reimbursements on taxes or council and water rates. Your legal rep can provide exact details of the sums involved.
Your solicitor will ensure any existing mortgage is paid off and any caveats are removed, then make sure all clauses on the sales contract are fulfilled.
If everything has gone to plan at this stage, your solicitor will be in touch to advise that settlement has been successfully completed. It's an adrenaline charged moment though be aware, you may not receive the keys until a few hours after settlement takes place.
Hold-ups can easily occur with minor mistakes like missing signatures, and that last thing buyers need is to waste money having removalists paid by the hour, sitting around waiting to unload furniture. This makes it worth ringing ahead to check if the keys are ready to be released.
With the keys in your hand, settlement is done and dusted and it's time to start making the property your home!
Talk to your Mortgage Choice broker for more information on what occurs during the settlement of your new home.