Wednesday 2nd September 2015

Understanding the Settlement Process

 
August Article - Settlement Process
 

Understanding the settlement process is so important when it comes to purchasing your first home; we’re here to break the whole procedure down step-by-step so you find yourself prepared for what’s ahead.

Let’s start by clarifying what it actually is - it’s when your lender (the bank or company providing your loan) meets with your legal representative, normally a solicitor, and a representative of the seller order to finalise your purchase. Easy!

First things first and that’s making sure your financial needs are covered. We do our research and review your credit history to find the best possible lenders to suit your circumstances, providing you with appropriate options to choose from (it’s not just the banks that have great deals). Once we’ve appointed a suitable lender, we’ll secure that home loan for you.

From here, the settlement process kicks off as we look to secure you a Settlement Agent; this will usually be a Solicitor or Conveyancer. We’ll then put together an approval letter that will be issued to your appointment agent (don’t worry, we do all the legal legwork for you - sit back and relax).

From here, transfer and sales documents will be prepared (if it’s a build you’re pursuing then this will be a ‘transfer of land’ document). It’ll be a while before this is all signed off, so don’t worry if it takes time - it needs to go through the seller’s representatives as well.

You’ll need more than that though, so that’s when your lender will step in and prepare all necessary mortgage documentation for you. We’ll be reviewing this with you when it’s ready so there’s no chance of you signing any legal documentation you don’t fully understand.

Now that your mortgage has been signed off and approved it’s time to transfer the settlement money and just a few days later your deal will be settled. Yay!

It’s important we mention that you will get a chance to visit either the property or land for another review before you sign off on everything and we’ll help to make sure you’re happy with everything. Most of the time you’ll be offered the opportunity to carry out one last inspection on the morning of the settlement, and we always recommend you do this because the last thing anyone wants is last minute surprises.

That's the Settlement Process for you in brief, to get the full run down from our team, give us a call anytime.

 

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