Understanding the home loan process

If you are not familiar with the loan process, it can seem a bit daunting at first.

However, once your application for a mortgage has been lodged with your chosen financial lender, your mortgage broker will be there to answer any concerns you might have and to address any questions from your potential lender.

Having a broker on your team makes the whole application to settlement process as smooth and painless as possible. So here’s a breakdown of what you can
expect once you have lodged your loan application for your West Australian or Sunshine Coast home and land package:

Conditional approval: Your selected bank or lender will review, then approve or decline your application. Then you will receive a call from your
Mortgage Broker letting you know the result of your application and if successful,
you will be given conditional approval of the loan for your Gold Coast or Perth house and land package. This step sometimes involves an assessment
of the property by an independent valuer.

Formal approval: You will receive a letter from your lender confirming the loan approval.

Contract preparation: Your lender’s legal people will work with your legal representative to prepare the loan contract for your Queensland or West Australia
house and land loan.

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 your lender.

After you have signed the contract to purchase one of our new house and land packages in Perth or Queensland, you may have several days’ leeway before
you are locked into the purchase. This is known as the ‘cooling-off period’. The laws vary according to state or territory, so you should seek a solicitor’s
advice at this point.

Here are some key points to bear in mind

Cancelling the contract: If for some reason you want to back out of the loan for your Perth or Queensland house and land, once you have signed the contract
with your lender, you must formally notify the agent in writing, and within a set number of “clear business days” after you (the buyer) have signed
the contract.

However, you must quickly receive legal advice before you notify the estate agent, seller or builder of your decision, in case there are legal ramifications
of breaking the contract.

Cooling-off periods: These are not applicable to properties sold at auction, commercial properties or farms.

Settlement: When everyone is happy with the documents, the money is transferred according to your instructions. Settlement is when the transfer
is complete.

What is ‘settlement’?

There are generally two types of settlement that happens with most property purchases:

Settlement of the property: This is when the balance of the purchase price is paid to the Perth or Queensland builder (who is the seller). You then receive
the keys and become the legal owner of the property.

Settlement of a loan: This coincides with settlement of the property. It takes place when the lender transfers the borrowed funds to the seller (Queensland
or Perth builder) or the seller’s mortgage holder.

Registration of Titles: The majority of people hire a conveyancer to handle the transfer of the property. Once the settlement is complete, you will need to transfer the name of the property from the Brisbane or West
Australian builder to yourself (the buyer). This is called the Registration of Titles, and incurs a separate fee. Then the home is officially yours.

What happens after settlement?

Your lender will send you a letter confirming your loan details, repayment amount and repayment dates. From this point on, your lender will manage your
day to day loan questions. Your Mortgage Broker will give you a call—just
to make sure you are comfortable with everything. And of course, your broker will be around to help you with any future loans or changes to your existing
loan.

West Australia house and land packages – Sunshine Coast home builders – Perth builders

To find out more about our house and land packages on the Sunshine Coast or in Perth, call us on 1300 904 040 or complete our online enquiry form.

 

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