There is a lot of emotion and pressure involved in the process of buying property and applying for a home loan. We regularly meet customers who have found their dream home and require a home loan as soon as possible, and we understand the feelings involved in the process.
As we work our way towards settlement, we often hear questions related to the timing and application of the loan, so we wanted to clear up a few things to help you understand the process.
As soon as our initial meeting has finished, we begin submitting the home loan application, and the First Home Owner Grant if that’s applicable too. This is mainly done online, and to ensure this step is completed efficiently we need to have all the right information from our customer. This includes:
- 100 points of ID, including your driver’s license
- Financial information – evidence of your income, copies of your bank statements, information about your existing financial commitments. This is why we may ask you to complete a fact find form prior to our meeting.
Once the application has been submitted, it usually takes around two to three business days for the lender to process the application before contacting us with a response. They may provide an indicative or conditional approval, depending on the information provided, should they require more. Usually lenders will ask for further information if:
- More documentation is needed
- More confirmation is required
- Names or details provided in the information is inconsistent
Lenders need to be 100% sure that you can afford the home loan, so they need to receive all paperwork requested. When your application requires further clarification or more documentation, your approval process will be delayed.
Other factors that may affect the timing of your home loan application are various and different depending on the lender you choose. They may include:
- The volume of mortgage applicants currently being assessed by the lender
- The need for additional paperwork
- How complex the application is
- Busy times of year e.g. end of financial year, Christmas and Easter periods tend to be quite busy
- Lenders Mortgage Insurance (LMI) requirements
The benefit of dealing with our brokers is that we know how lenders are performing time wise, and if they might be experiencing an unusually long delay processing applications. If our customer needs a fast approval, we can usually recommend a similar product with a different lender, likely to be approved within the required time frame.
Stay tuned for part 2 of this post coming next week!
We will outline further steps encountered towards approval, such as: property valuation, loan offer documents and the settlement procedure.
Why don’t you book an appointment with one of our brokers in the meantime and find out more about your options? Print out this checklist of information to bring with you, so you can be on the road to approval in no time!
Complete the form atop this page or call us at Woolloomooloo to book an appointment today! 02 9358 4855