Published at: 6/21/2016 3:29:01 PM
Settlement is a critical phase where plenty can go wrong. Follow our five tips to sail through a stress-free settlement.
The normal settlement period is around four to six weeks, and when you’re relocating to a new home it can be a busy period with plenty to plan for – moving furniture, organising a new school for the kids, and maybe even a new job for you.
Sure, your solicitor maybe handling the nuts and bolts of settlement but don’t be complacent. Take a look at our five steps to ensure settlement goes according to plan.
1 Arrange loan pre-approval
Few scenarios can be more stressful than racing from lender to lender trying to secure a home loan as the clock ticks by to settlement. If you can’t fund the purchase you risk losing your deposit, so for your own peace of mind talk to a lender about home loan pre-approval before you sign the contract of sale.
2 Organise a pest and building inspection
Here’s another step to take before committing to a property. The expression ‘let the buyer beware’ applies in spades to real estate, and arranging a pre-purchase pest and building report means you won’t be the person who buys the termite infected dump with dodgy wiring and an illegal extension.
3 Check your loan offer is accurate
When you receive a letter of offer from your lender don’t assume everything will be fine. Your home loan documents will reflect what is in the offer, and correcting mistakes can waste valuable time. Check that the loan amount, the rate, your name and the address of the property are all spot on.
4 Hold off on any major life changes
Approval for your new home loan is based on the information you provide in your application, and until the purchase of your home is settled it’s a good idea not to make big changes to your life. Leaving your job to start a new business for instance could see the lender withdraw approval.
5 Understand exactly what is sold with the place
Misunderstandings about what exactly you are buying are a common source of settlement headaches.
It can be extremely upsetting to discover the Smeg dishwasher you loved was actually a roll-away that’s moved on with the vendor. This highlights the important of asking your solicitor or conveyancer to review the contract before you sign. If you’re unsure about whether something is included in the sale ask the agent and have the response put in writing.