Settlement day is meant to be exciting, the final step where you officially get the keys to your new home. But sometimes the process does not go to plan, and small hiccups can cause frustrating delays.
Valuation Disputes
Even after loan approval, valuations can cause issues. For example, if you are buying an off the plan property or something unique that is harder to compare, the bank’s final valuation may not line up with the contract price.
If the valuation comes in lower, it can create a funding shortfall that needs to be resolved before settlement can proceed.
Tip: Having a broker on your side means you will know early if the property type could raise red flags, and there may be options to prepare for a potential shortfall.
Slow Legal or Conveyancing Work
Your solicitor or conveyancer plays a key role in making sure all the right documents, certificates and signatures are in place. If paperwork is missed or delayed, settlement cannot go ahead on time. Something as simple as them missing the special conditions section could add massive delays.
Tip: Choose a conveyancer who is proactive with communication. A broker can also help by keeping everyone accountable and ensuring timelines are met.
Last-Minute Lender Checks
Even once your loan is approved, lenders at times may re-check certain details just before settlement. This might include confirming your employment, reviewing your bank accounts (funds to complete), or checking that your financial situation has not changed. If something does not line up, it can cause last minute hold ups, or even missing the settlement date.
Tip: Avoid making big financial changes between approval and settlement (like changing jobs or taking out new credit). If anything does change, let your broker know right away.
The Takeaway
Settlement delays are stressful, but they are also avoidable in many cases. The key is having the right people in your team such as a proactive conveyancer, and a broker who keeps everything on track with the lender.
At Sure Path Finance, we help coordinate the process so you can focus on the exciting part, getting your keys and moving in!
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