Taking out a home loan is one of the most important decisions in life. The following are a few steps you would expect when going through the process of applying for a home loan and up till you really get it (aka the settlement)
- Conditional approval – Your home loan application will be reviewed by your selected bank or lender. You’ll get a call from your Mortgage Broker letting you know the answer. This step sometimes involves an assessment of the property by an independent valuer.
- Formal approval – You’ll get a letter from the lender confirming the loan approval.
- Contract preparation – Your loan contract will be prepared by the lender’s legal team and your legal representative.
- Signing the Contract – Your legal representative should explain the details of the contract with you before you put pen to paper. Once the contract is signed your legal rep should forward it to the lender.
- Settlement – When everyone is happy with the documents, the money is transferred according to your instructions. Settlement is when the transfer is complete.