Buying a home
From application to settlement: the flow of a home loan
Nelvin Das is a Mobile Lending Manager with Suncorp Bank and has extensive experience dealing with home lending. Nelvin knows the stress and the mystery that revolves around buying a home and is sharing his insider knowledge to let you know what happens behind the scenes.
The path to your home
Buying a house – whether it be as an investment or as your home – can be a long and arduous process. There is a lot more to buying a home than saving money for a deposit, making an offer then paying a mortgage.
There are many steps along the way that you may not be aware of.
After being approved for a loan, making an offer then being accepted and paying a deposit, there is a lot that happens behind the scenes. There are a lot of boxes being checked and hoops being jumped through in order for you to be protected. That’s our job.
It is important to know exactly what happens when settling a property and what it entails, not only to give you peace of mind as to where your money is and where it’s going, but so you can get the keys to your new home knowing everything is in order and you can focus on enjoying your new property.
Once a purchase contract has been won at auction or via private sale, provide it to your lending specialist and we will organise an independent valuer to assess your property.
As a buyer this is an important step and you will need to be prompt with providing information, I have seen buyers not act with urgency, and as a result, have not met their financial obligations on the purchase contract.
The key items to address at this stage external to your bank loan are:
- Pay initial deposit to secure the home
- Get insurance for your new home
- Arrange building and pest inspection
- Arrange pool safety certificate
From a banking perspective, we will fulfil any conditions outlined in the pre-approval, our validation/credit team will complete their assessment and if successful, provide you with an unconditional approval advice. This advice will allow you to officially secure your new property.
Your banker will support you with any requirements and liaise directly with our internal teams to ensure we meet your financial deadlines.
Allow 14 days from contract signing to be the financial due date and 30 days for settlement.
The road to settlement
Congratulations your loan is Approved!
Now your banker will organise for loan contracts to be issued. This can be emailed directly to you, printed off at your local Suncorp store or sent in the mail depending on which is most convenient. The documents will detail our obligations as your bank and your obligations as a mortgagee.
At this stage it is important you read and fully understand your financial obligations with the bank. You will have an opportunity to ask and get any final questions addressed with your lending specialist.
Depending on which state you are in, the mortgage documents might need to be witnessed by a Justice of Peace or Solicitor.
We will take your completed loan documents and get them reviewed by our validation team, they will then forward documents to our settlement agent to organise with your conveyancer a settlement day and time for your new home.
In this process you will need to stay close to your conveyancer as they will provide you with guidance and support to ensure your settlement goes through on time.
Before your settlement date, you will need to transfer your remaining deposit to your conveyancer. They will then draw the amount from their trust account for settlement.
Your lending specialist will keep you updated on when your settlement gets arranged, they will also coordinate with your conveyancer and our settlement agents to ensure settlement is met.
On the day of settlement your loan accounts will be created and you will get to pick up the keys of your home.
Your first mortgage payment will be due one calendar month after your settlement date.
Congratulations, you can now go pick up the keys to your new home!
The information is intended to be of a general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.
Any advice contained in this document has been prepared without taking into account your particular objectives, financial situation or needs. For that reason, before acting on the advice, you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs. Where the advice relates to the acquisition, or possible acquisition, of a particular financial product, you should consider the Product Disclosure Statement before making any decision regarding the product. Contact us for a copy.
Home Loans are issued by Suncorp-Metway Ltd ABN 66 010 831 722 AFSL No 229882 Australian Credit Licence 229 882 (“Suncorp Bank”) to approved applicants only. Fees, charges, terms and conditions apply and are available on request.
Various products and services are provided by different entities of the Suncorp Group. The different entities of the Suncorp Group are not responsible for, or liable in respect of, products or services provided by other entities of the Suncorp Group.