Pre-Purchase

• Real Estate Agent and buyer begin the search for the home.
• Buyer obtains a pre-approval for a loan and how much they can look at borrowing. At this stage the buyer chooses a lender and may request a pre-approval of their loan.

 Day 1: Application

• The buyer becomes the borrower and completes the home loan application.  Items to bring to the mortgage application meeting can be obtained from our ‘Document Checklist’.

Days 1-3: Processing

• Application is submitted to the lender for assessment.
• The lender orders property valuation, credit report, and completes the normal verifications of employment & checks the credit report.
• Lender submits the loan to the mortgage insurer.
• Conditional approval from the lender is received.

Days 3-5: Processing

• Valuation is received
• Once the valuation has been received, the lender re-submits the loan to the mortgage insurer.
• Once the loan is approved contracts can be formally exchanged (check with solicitor or conveyancer).  The buyer may also have the conveyancer / solicitor order pre-purchase building & pest inspection reports.
• Full payment of deposit and some costs may be due at this time.
• If the deposit is from a Deposit Bond this is done now.
• Conveyancer / Solicitor will also commence relevant searches.

Days 5-10: Receipt Of Letter Of Offer

• The receipt of the letter of offer means that approval conditions have been met & formal approval is issued.
• If there any questions, it is extremely important for the borrower to ask them at this time & seek clarification.
• Loan & Mortgage documents are issued for authorisation & return.

Days 10-42: Pre-Closing – When The Loan Is Approved

• The settlement is scheduled.
• Solicitor / conveyancer may call upon funds for the payment of Stamp Duty, if applicable.

Day 42: Settlement

• The borrower's conveyancer / solicitor obtains loan proceeds from the lender after certifying the Title is correct.
• Borrower’s conveyancer / solicitor obtains balance of funds to complete the purchase from the borrower.
• The loan is advanced and the borrower moves into the new home.

Many loans settle sooner than 42 days, however this seems to be the standard number of days from the Exchange of Contract to Settlement.  If you require a quicker or slower settlement, you should mention this to your conveyancer or solicitor early in the purchase process.