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5 Tips For Smooth Sailing to Settlement Day

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5 Tips For Smooth Sailing to Settlement Day
Posted 22 July 2019

The following tips will help keep you focused, so you sail through to settlement day

The owners have accepted the price you offered for the home of your dreams, wonderful! Now all you have to do is pay the deposit, sign the contract, get a loan, wait for settlement day and move out of the old and into your new home, right? Sounds simple if you say it quickly, but that's not the best way to handle a home purchase. Also, unfortunately, there's quite a bit to know and do to make the next four to six weeks (or whatever period you have agreed upon to settle) run smoothly. You will be busy, so you will need a plan. There's the furniture removalist to organise, and the kids might need to go to a new school. Don't panic. The following tips will help keep you focused, so you sail through to settlement day:

1. Arrange Pre-approval of Your Home Loan

Nothing could be quite as scary as buying a home without an approved loan. What would you do if your lender refused your application? You'd lose your deposit for a start, and you would have to find a lender somehow before settlement, so the wise home buyer has their loan pre-approved before they sign the contract and hand over the deposit. Pre-approval will also give you peace of mind so you can get on with the other aspects of relocating. Saving up for a home loan doesn't have to take as long as you may think. Opening a high interest online savings account can help you reach your financial goals faster. For home loans, you can check out Next Address for mortgage brokers and lenders, but there's even more to do before you sign up and pay the deposit, so read on.

2. Make Sure Your Loan Offer is Correct

When your home loan application is accepted, you will receive an official letter from the lender. Don't just scan it and forget it. Read it over very carefully, then reread it twice, at least. Unless you do this and correct any mistakes, it could mean you won't be able to settle on the decided date, and penalties might apply, depending on your contract. The documents you receive will outline precisely what the offer contains, and be aware that it takes time to rectify errors. Make sure you check the interest rate, the amount of the loan, any extra fees, and that your details and the property address are all correct. 

3. Arrange a Pest Inspection 

It's crucial that you know whether or not the home you want to buy is structurally sound and not infested with termites or borers, mould or dry rot, rodents, for instance. So, before you commit, arrange a pest and building inspection, otherwise, as the old saying goes, buyer beware. This adage operates in most sales experiences, but especially in the real estate industry. In many instances, the owner might not be aware of any problems, so the onus is always on the buyer to check. It's the same when buying a car; you have to have it checked by a mechanic. Next Address has plenty of professionals who can help you with all inspections. 

4. Don't Make Any Significant Life Changes

When your lender approves your loan, it is done based on the circumstances you provided when you applied. Be aware that if you change your job or income, or make any other major changes, your lender can refuse the loan. So stay put until after settlement before you accept a new job even if the pay is higher than you now receive, just so you don't frighten the horses.

5. Be Fully Aware of What is Included in the Sale

Family and friends will be able to tell you stories about settlement day bloopers, woes and even disasters, so be sure about what you are buying. Go over your contract with a fine-tooth comb to avoid any misunderstandings. Remember, you might assume the expensive dishwasher comes with the sale, but always ask the agent to be sure. You could negotiate to have it included in the sale, but ensure it's added to the contract. Before you sign the contract, ask your conveyancer or lawyer to review it for you. You can find the best solicitors and conveyancers on Next Address. 

Following the advice above can ensure that your settlement day is one to celebrate! Once you're sure the paperwork is perfect, your loan is in place, and all your finances are in order - and you're all packed and ready to move out - you should sail through the day with ease. Don't forget the bubbly!

At Next Address, we've got a troop of professionals such as pest and building inspectors, painters and handypersons, mortgage brokers and lenders, cleaners and tradies all ready to help you with buying and selling. Click through to any of the services on our website, leave your details and have a professional get back to you. Moreover, our 'Smart Match' Marketplace and Service Team are all you'll need to buy or sell any property privately. Call us on 1800 316611 today!

Author's Bio 

Alex Morrison has worked with a range of businesses giving him an in-depth understanding of many different industries including home improvement, financial support and health care. As the owner of Integral Media, he is now utilising his knowledge and experience with his rapidly increasing client portfolio to help them achieve their business goals.




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