After Your Home Loan Is Approved
So, after you have gotten your home loan and your offer was accepted, what happens then? Most people think that you start moving in, decorating the place, doing a few renovations and so forth to make it your home, but this is actually not the way that things go.
Your home loan may be approved but it is not yet registered, meaning that the funds have not yet been transferred into the sellers account. It usually takes about 69 working days for all of this paperwork to get settled, and the great thing is that you will barely have to lift a finger because everything will be going through an attorney, except for the part where you will have to sign the documents.
This is a very uncomfortable situation to any buyer because he or she may not have accommodation and will need to stay at a hotel or at a relative for that time, if he or she has given notice on his/her rent contract. While it is possible for the buyer to move into the home before the documents are settled, in the case that the seller is still living in the home it may be so that the buyer will be required to pay rent to the seller for as long as the documents take to settle, so this is not a very attractive option considering that you should be saving for home improvements and for repaying your home loan faster than required to be able to save on interest and shorten the loan term.
If you, as the buyer, are moving into the house before all of the documents are settled it is not a very good idea to start with renovations and decoration simply because the documents may not go through correctly, which will result in you losing all of that money. Although this rarely happens, it is still possible for it to happen and it may be you, so be careful and think logically about the matter. It is understandable that you want to make the house your home as soon as possible and give it some of your personality, but as said, think logically about the matter because you may be digging a hole for yourself.
The best thing that you can do for yourself is wait for the documents to be settled and use that time to save up some money for either early repayments or renovations on the home, because you will most likely want to change something, even if that something is as little as repainting the house or just a room.
Your home loan may be approved but it is not yet registered, meaning that the funds have not yet been transferred into the sellers account. It usually takes about 69 working days for all of this paperwork to get settled, and the great thing is that you will barely have to lift a finger because everything will be going through an attorney, except for the part where you will have to sign the documents.
This is a very uncomfortable situation to any buyer because he or she may not have accommodation and will need to stay at a hotel or at a relative for that time, if he or she has given notice on his/her rent contract. While it is possible for the buyer to move into the home before the documents are settled, in the case that the seller is still living in the home it may be so that the buyer will be required to pay rent to the seller for as long as the documents take to settle, so this is not a very attractive option considering that you should be saving for home improvements and for repaying your home loan faster than required to be able to save on interest and shorten the loan term.
If you, as the buyer, are moving into the house before all of the documents are settled it is not a very good idea to start with renovations and decoration simply because the documents may not go through correctly, which will result in you losing all of that money. Although this rarely happens, it is still possible for it to happen and it may be you, so be careful and think logically about the matter. It is understandable that you want to make the house your home as soon as possible and give it some of your personality, but as said, think logically about the matter because you may be digging a hole for yourself.
The best thing that you can do for yourself is wait for the documents to be settled and use that time to save up some money for either early repayments or renovations on the home, because you will most likely want to change something, even if that something is as little as repainting the house or just a room.
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