What is the home loan approval process?
If you're applying for your first home loan, you might be wondering what process your application goes through before it's given the green light.
Each request will go through a similar process, so we've put together this handy guide to help you understand what to expect.
Find a mortgage product that's right for you
The first step is to find a home loan that's suitable for your needs. With so many types of first home buyer loan available, it's a good idea to talk this through with an expert to make the right decision.
Put forward your application
Once you've decided which mortgage you're applying for, it's time to submit your application. This means having all your documents in order, including details of your income, monthly expenses and anything else your lender might request to see.
This is when your potential lender will look over all the information you've provided and determine whether you're likely to be able to meet the repayments without defaulting.
Providing a home loan offer
Your lender will then get in touch to let you know whether your application has been approved. This will be sent out to you and has to be signed and returned for the contract to be binding.
Make sure you read all the terms and conditions and understand them fully before making the commitment. Your mortgage advisor will be able to help if necessary.
Receiving mortgage documents
Once everything has been finalised, you should receive all your mortgage documents. This will provide you will all the specifics of your home loan, as well as detailed information about your lender.
Settling the home loan
This is the stage where the property is officially transferred to your ownership. First the loan will get drawn down and then the property is all yours, leaving you to arrange the move!