Unconditional to Settlement Time

Discussion in 'Loans & Mortgage Brokers' started by Sheep112, 25th Jun, 2017.

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  1. Sheep112

    Sheep112 Well-Known Member

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    Good day,

    Quick question requiring an urgent response.
    If a loan goes unconditional, how much time does the bank require before settlement?
    I have a property with finance clause due on Monday, wanting to request an extra week extension.
    If this is accepted it would only allow the bank 1 week before settlement. Is this enough time for the bank or should I request a week extension to the settlement date too? QLD's purchase only 30 days settlement. I have 14 days finance clause.
    Please help.

    Thanks.
     
    Sheep112, 25th Jun, 2017
    #1
  2. wylie

    wylie Moderator Staff Member

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    One week is doable from unconditional to settlement as long as the bank is on the ball.
     
    wylie, 25th Jun, 2017
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    They want 10 days AFTER received signed documents back although they can be pushed.

    You still need to receive the loan and mortgage documents. Sometimes there are errors and or documents going missing too.
     
    Terry_w, 25th Jun, 2017
    #3
  4. wylie

    wylie Moderator Staff Member

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    Do you know why they want the extension? We just went through this. Gave a second week for finance and settled one week later. Bank clearly was organized. I was doubtful. We were told the extra week was due to one purchaser being overseas but things were progressing as hoped and they just wanted to be sure finance was definitely approved before going unconditional.
     
    wylie, 25th Jun, 2017
    #4
  5. Tom Simpson

    Tom Simpson Well-Known Member

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    Some banks can email docs the same day as approval (some banks not all!). Provided all goes well, there are no errors and you physically drop them back the same day then a week to a week and a bit is doable.

    Most banks take at least 24-48 hours to verify docs then 2-3 days to book on settlement even with Pexa.

    This obviously depends upon all parties having their ducks lined up correctly, a chain is only as strong as it's weakest link.
     
    Tom Simpson, 26th Jun, 2017
    #5
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  6. Corey Batt

    Corey Batt Well-Known Member

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    It really does depend on the lender - some will get it through easily in that timeframe, others will struggle to even get it done in a week if they already have received the signed loan contracts back.

    Best to get advice from your broker who will be able to find out how the lender is sitting currently with getting things back and whether they can get the file prioritised for settlement. We're just coming through one of the busiest settlement times of the year (EOFY) so there may be some overhang in lender delays so best to get onto this early.
     
    Corey Batt, 26th Jun, 2017
    #6
  7. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    We had a loan approved by Westpac on Thursday and it is settling tomorrow (it was approved previously, but there were errors in the details which needed to be resolved).

    3-4 days can be done.
     
    Peter_Tersteeg, 26th Jun, 2017
    #7
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    It all comes to a) the lender and b) how hard your broker/banker pushes the issue.

    If the lender can email out docs then you're going to save some time.

    Having said that - one week between approval and settlement is less than ideal. In a perfect world you'd want a couple of weeks at least.

    Cheers

    Jamie
     
    Jamie Moore, 27th Jun, 2017
    #8
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I don't know if Westpac email docs as a matter of course - but I have had St G do it, and most of the other majors.
     
    Terry_w, 27th Jun, 2017
    #9