Normally settlement periods are around four to six weeks, and when you’re relocating to a new home this can be a busy period with plenty to do. You’ll need to plan for moving furniture, organising a new school for the kids, and maybe even changing jobs after settlement.
Your solicitor may be handling the nuts and bolts but don’t be complacent. Take a look at our five steps for preparing for settlement to ensure everything goes according to plan.
1 – Arrange loan pre-approval.
Few scenarios are more stressful than purchasing a property without funding in place. Imagine 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: finding out what’s going on behind the exterior. 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 get stung by a termite-infested 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, take the time to double (and triple) check it. Your home loan documents will reflect what is in the offer, and going back and forth to correct mistakes can take valuable time out of your settlement period. 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Approval for your new home loan is based on the information you provide in your application, and can be withdrawn if your circumstances change. Until the purchase of your home is settled it’s a good idea to keep things as they are, if you can. Save starting a new business or changing jobs until after settlement.
5 – Understand exactly what is sold with the place.
Misunderstandings about what exactly you’re buying are a common cause 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. Make sure you ask your solicitor or conveyancer to review the contract before you sign. If you’re unsure about whether something is included in the sale, you can ask the agent to confirm – or negotiate to have it included – and get the response put in writing.
Preparing for settlement doesn’t have to be stressful. After all, this is a time to celebrate. Make sure your paperwork is in order and you’re fully across the terms of the sale, and it should be smooth sailing until you pick up the keys. And that means more time to plan your exciting new future.
This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.