There is nothing I love more than calling a client to congratulate them on their formally approved loan. As soon as the loan is formally approved the lender gets to work issuing the loan contract and mailing them out to you.
Once you received them you have a small window to get them completed and sent back to your Lender to prepare for settlement so it’s really important to make sure you complete them correctly to save time and rework.
Although every lender has their own set on contracts and loan documents they generally cover off on 3 main things and then perhaps a few lender unique documents.
The Documents
1. The loan contracts
2. The Mortgage Title document (TLS100)
3. Authority to direct debit
There are some important things to consider when you are signing the above documents because a mistake in the loan contracts, no matter how small can hold up your settlement and cause undue stress.
Important Things to remember
You can’t amend the loan contracts or white out information, if there is an error then the contracts need to be reissued
You will need a Justice of the Peace to witness your Mortgage Documents (in QLD) they will need to physically witness you signing so you will need to hold off signing until you are in front of them.
If you need a witness for your loan contracts this witness can’t be another loan applicant.
If you would like the lender to debit your account the remaining funds needed for settlement you must complete the Authority to debit including the account name and amount.
Depending on the property you will need to send a certificate of insurance back with the loan documents to show it is insured.
Sign the loan contracts with the same signature you have used on all the paperwork.
The most important thing to remember about your loan documents is if you aren’t sure, contact your Broker. Completing the documents incorrectly or the documents having an error can cause delays and delays can mean financial penalties so if in doubt, ask.
For more information or if there is a particular topic you would like me to cover please leave a comment below.