Between conditional approval and settlement, several genuinely different documents get signed, worth knowing what each one actually commits you to before you sign it, not after.
The typical sequence
- Conditional/pre-approval letter, an early indication, not a binding commitment from either side
- Formal loan offer / letter of offer, sets out the actual approved loan amount, rate, term, fees and conditions once a specific property is known
- Mortgage documents, the legal document giving the lender security over the property, generally prepared and lodged by your conveyancer/solicitor and the lender together
- Loan contract / facility agreement, the actual terms and conditions governing the loan for its life, not just at settlement
Read the conditions section carefully
A formal loan offer often still lists outstanding conditions, final valuation, updated income verification, evidence of insurance, or other items, that need to be satisfied before the loan is genuinely unconditional. Signing the offer document doesn’t automatically mean every condition has already been met; check what’s still outstanding rather than assuming the loan is fully locked in.
Get professional review, not just a broker’s summary
Your conveyancer or solicitor should review the property contract and any related legal documents, a mortgage broker is not a substitute for that legal review, and shouldn’t present itself as one.
What to prepare
- Read the conditions section of any formal loan offer, not just the headline rate and amount
- Confirm which documents your lender needs signed, and by when, relative to settlement
- Have your conveyancer/solicitor review the property contract separately
Next step: talk with KartikKumar about what to expect at each stage of your specific application, and always route contract-specific legal questions to your conveyancer or solicitor.