Warrnambool Mortgage Brokers offer five tips to reduce settlement day stress

Posted on 18/11/2021 by Andrew Morris in Mortgage Broking, News
Andrew Morris
Andrew joined Sinclair Wilson in May 2017 as Mortgage Broker, having spent the past 10 years in the banking industry. With a small business background - in hospitality, no less...

Settlement Day is D-Day if you’ve bought a Warrnambool property.

That magical day a property is finally yours.

If this is the first property purchase you’ve made, rest assured that even experienced investors report butterflies in the lead up to this occasion – it’s normal to be anxious about everything going to plan.

The good news is, that with the right help and approach, Settlement Day can be exactly what it should be – exciting, rewarding and to-plan.

We’ve outlined some tips that have found over the years work to ensure Settlement Day is more about the excitement and less about the anxiety.

But first, we’ll cover some basics about ‘Settlement Day’.

What is Settlement Day?

It’s the day the ownership of a property legally transfers from one party to another.

That said, it’s a complicated process, with a list of regulations and procedures that have to take place before this transfer occurs.

The good news is, your Conveyancer will take care of these details, and your Mortgage Broker (us, hopefully) will ensure your finance is all in order.

What happens on Settlement Day?

For you? You are right to treat it like any other day.

Meanwhile, your Conveyancer and a representative from your home loan provider will meet with the seller’s representative.

Your Conveyancer will receive the property title, and then register you as the new owner.

Checques will be exchanged, or funds transferred, and any government fees and duties will be paid.

Once this has been done, you will be notified that the Settlement has gone through!

The next step is then to pick up the keys to your new property!

Now you’re across the basics, read on for our five top tips that we think will ensure you are as prepared as possible come Settlement Day.

Tip #1: Sort out your finances early

The best way to ensure a hassle-free settlement is to have the right people on your team. In terms of your finance, that means locking in a reputable Mortgage Broker (like me).

Even before you begin your property search, work with us to organise pre-approval, so you will know how much money you have to work with.

Once you have found the right property, we will work with you to step through the home loan application process, right through to settlement and beyond.

Tip #2: Find a good Conveyancer

A reliable Conveyancer will be essential to oversee the complex legal requirements and paperwork involved in a property purchase.

One of the many tasks they will see to will be ensuring there is adequate time between when your finance is approved and the nominated settlement date, to ensure you aren’t caught out by work backlogs or standard timeframes for the many procedures and processes that accompany a property transfer.

If you aren’t sure what constitutes a good or reliable Conveyancer, talk to us. We deal a lot with local Conveyancers and can recommend a number of professionals that we find are the most thorough and efficient.

Tip #3: Don’t be afraid to set a settlement date that suits YOU

Keep in mind that a Settlement date is negotiable.

Even if you’re buying at an auction, and the contract stipulates a setttlement period, you may be able to negotiate with the seller’s agent if the date doesn’t suit.

By the way, the settlement period begins the day the contract is signed. A standard settlement period is between 30 and 90 days. When negotiating this date, you will need to factor in enough time for your finance to go through (we can help clarify that part), for the necessary searches to be undertaken and for paperwork to be filled out, submitted and approved.

Tip #4: Follow ALL the rules and deadlines when it comes to paperwork!

Deadlines and perfect paperwork are crucial to settling on time. Forgetting to return paperwork on time, missing a signature or forgetting to tick a box can all hold up the approval of a loan, and settlement of the property.

This is one occassion where, ‘I was a bit busy’ will NOT earn you any favours or forgiveness.

Pay attention to ALL the details when you are completing paperwork, and make sure you return it as soon as possible to make sure things go as well as they can.

Tip #5: Enjoy and take it all in – you have just bought a property!

Purchasing a property is a big deal! It’s exciting! So enjoy it!

Settlement Day is about celebrating a new chapter, rather than spending all day stressing about what could go wrong.

The best way to ensure that your Settlement Day is all it should be (a big deal; exciting; enjoyable) is ensuring you have the right professionals on-hand to support you through the process.

That way, you will be best-placed to be able to focus on the exciting occasion… and perhaps even planning your housewarming party?

Get in touch today to get the ball rolling.