First Home Buyers Guide from Austral Mortgage
Step 7: Finalise You Home Loan
Your next step is to get your home loan formally (unconditionally) approved.
For your own peace of mind, get the formal approval before paying any part of the deposit or exchanging contracts. Even though you already hold a pre-approval, it is generally subject to a satisfactory valuation.
What this means is that the lender obtains an independent valuation report prior to the formal approval being issued. The valuer physically inspects the property and provides his / her professional and independent opinion regarding the actual property and the local market.
Once the formal approval has been issued, the lender will instruct their legal department / legal representatives to prepare the Loan Agreement. Read through all the terms & conditions carefully and if you have any questions, ask!
For your own peace of mind, obtain an unconditional approval before exchanging the contracts…
Sign the conditional approval and return it to the lender along with a payment for your valuation/ establishment fee and any other requirements / conditions
The lender will obtain an independent valuation report for mortgage purposes
Once all the conditions are met, the lender will issue an unconditional approval
- Now you have a peace of mind and you can instruct your Solicitor / Conveyancer to exchange the contracts
The lender will also have a solicitor acting on their behalf. The lender’s solicitor will issue a Loan Agreement outlining all the terms and conditions of your newly approved loan. Read the Loan Agreement carefully and if you have any questions, don’t hesitate to ask.