Why Timely Submission of Formal Finance Approval Matters: A Crucial Part of the Home Buying Process

Picture this: you've found your dream home, and everything seems to be falling into place. The only task remaining is to submit your formal finance approval to seal the deal. Yet, what appears to be a simple task can have a significant impact on the outcome. In this post, we will discuss why it's imperative to send your formal finance approval to your real estate agent and conveyancer/settlement agent as soon as possible.

Formal finance approval is the point in your home buying process when your lender confirms your loan application. It means the bank or lender has conducted a thorough review of your financial background, approved the funds necessary to complete the transaction, and ultimately provides you with the green light.

When you receive your formal finance approval, it's not just a confirmation for yourself, but it also holds critical importance for your real estate agent and conveyancer/settlement agent. Sharing this vital document with them as soon as possible helps ensure a seamless and efficient transaction.

There are several compelling reasons to send your formal finance approval without delay:

1. Meeting contract conditions: Often, contracts for purchasing a property include clauses regarding finance approval. Delaying prompt submission could potentially breach the terms of the contract and put the transaction at risk.
2. Staying on top of inspection deadlines: Certain deadlines must be met during the home buying process, such as building and pest inspections. Prompt communication of your formal finance approval demonstrates your commitment and helps align other necessary steps in a timely manner.
3. Reduced risk of miscommunication: Regularly updating your real estate agent and conveyancer/settlement agent helps reduce the risk of misunderstandings that could stall the process or result in unsettling surprises.
4. Efficient property purchase: Providing your formal finance approval as soon as possible ensures that your real estate agent and conveyancer/settlement agent can realistically set and monitor deadlines, making the property transfer efficient, smooth, and hassle-free.

Legal ramifications: In some cases, failure to provide timely formal finance approval may breach the terms of your contract and expose you to potential legal issues.

In summary, sending your formal finance approval to your real estate agent and conveyancer/settlement agent as quickly as possible is a crucial part of the home buying process. Doing so promotes efficiency, keeps everyone informed, establishes trust, and ultimately leads to a smoother and more enjoyable property transaction experience.

While it may seem like a small step, don't underestimate the power of timely communication and following through on commitments when navigating the complexities of home buying.