What To Do After Home Loan Approval: 10 Key Steps

Getting a mortgage is an exciting milestone in buying a house in Australia, but the work isn’t over yet. Understanding what to do after home loan approval is crucial to ensure everything runs smoothly until settlement day, when you’ll officially take ownership of your new home.

1. Engage a solicitor or conveyancer
2. Review the loan contract, sign and return the documents
3. Do a title and strata search
4. Search the sales history of the property
5. Get a building and pest inspection
6. Exchange contracts and pay the deposit
7. Organise home and contents insurance
8. Conduct a final property inspection
9. Settle the property and move in
10. Re-evaluate your mortgage on an ongoing basis

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1. Engage a solicitor or conveyancer

Once you’ve been approved you’ll want to engage a solicitor or qualified conveyancer to handle the conveyancing — the legal process by which a sale occurs. This involves everything from a title and strata search, an examination of the loan contract and the contract for sale, the exchange of contracts with the seller’s solicitor, and the final settlement.

Essentially, your solicitor is there to ensure all your paperwork is in order. They should also take care of the stamp duty payment and any other fees or charges due on settlement.

» MORE: What is a buyer’s agent? Do you need one?

2. Review the loan contract, sign and return the documents

When you receive your loan contract from your lender, review it carefully with your solicitor to ensure everything is as per your agreement. This includes the interest rate, term of the loan, repayment structure, up-front fees payable and any ongoing annual fees.

Once you’re happy with the contract, sign it and return it to the lender.

» MORE: Can I negotiate my home loan interest rate?

3. Do a title and strata search

You won’t need to do this yourself: your solicitor will, as part of the conveyancing process, conduct a title search of the property, and a strata search if you’re buying an apartment.

Still, it is still an important part of the process, as it checks for anything unusual in the title deeds, such as any debt hanging over the property. It also ensures there aren’t any extra fees associated with the strata title, like a pending charge of $20,000 per apartment to fix a structural issue with the building, for example.

» MORE: Considerations when choosing between a townhouse vs. house vs. apartment

4. Search the sales history of the property

Conduct a search of the property’s sales history. This will reveal details such as when the property was built, how much it previously sold for, and how frequently it has been sold in the past.

Doing the research so you have details like these will make you as well informed as possible before taking on what is likely to be the largest financial commitments of your life.

» MORE: Finding the estimated market value of a property

5. Get a building and pest inspection

It’s essential to get a building and pest inspection before buying a property to identify any defects and problems. The inspection should include all accessible parts of the property, including the interior and yards.

Typically, this will cost a few hundred dollars and should give you peace of mind going forward with the purchase.

» MORE: Costs to know when buying a house

6. Exchange contracts and pay the deposit

The next step involves getting a copy of the contract of sale, which is distinct from the loan contract. Your solicitor will go over the contract with you to ensure there are no hidden surprises and you’re getting what you paid for.

Once you’re satisfied, sign and exchange contracts with the seller’s solicitor, and pay the deposit.

» MORE: How much do you need for a house deposit?

7. Organise home and contents insurance

It’s a good idea to have your home and contents insurance sorted before you move in so you’re covered from day one.

Home and contents insurance is generally optional but some lenders will require you to take out a policy as part of the mortgage, which covers them in the event of a disaster.

» MORE: What about lenders mortgage insurance (LMI)?

8. Conduct a final property inspection

Before settlement, arrange a final, pre-purchase inspection to ensure the property is in the same condition it was when you agreed to purchase it.

Experts generally recommend buyers do this step before settlement day in case there are any nasty surprises.

» MORE: How does property settlement work?

9. Settle the property and move in

Settlement day is when you officially take ownership of the property. The remainder of the agreed-upon price is transferred to the seller, the title deeds are transferred to you, and you receive the keys to the property. This is also when your mortgage officially starts.

Your solicitor will usually attend the settlement for you, but you’ll need to ensure the funds are available from the lender on that date, as well as additional fees, such as stamp duty.

» MORE: Smart ways to cut settlement costs

10. Re-evaluate your mortgage on an ongoing basis

Finally, once the property is settled, you should constantly look for ways to improve your financial situation, and this means re-evaluating your mortgage.

Admittedly, while there’s not a lot you can do over the first 12 months or even the first few years, you can eventually refinance for favourable terms. Better loan deals often emerge over time, so look out for promotions allowing you to save on interest or fees.

» MORE: What to know about refinancing a home loan