STEP 3: Mortgage documents
Now the paperwork begins. The stress and time challenge is all done. The period from application to formal approval (which is often done during the cooling off period) means time pressure. Now that is done, the process is much calmer. Settlement is usually 42 days after signing of the contract.
So if you had a 5 day cooling off, you have about 37 days left to get ready for settlement. With formal approval done, the bank will instruct their solicitor to create the mortgage documents. This is either a thick paperwork pack that is mailed to you or an electronic pack emailed to you.
The common documents in the pack are:
- Loan offer document
- Loan disbursement authority
- Terms and conditions
- Direct debit request form
These all need to be reviewed, signed (witnessed) and returned. When they have been received back by the bank they are verified for acuracy and if that is all ok your application is marked “ready for settlement”.