How does the home loan application process work?

October 20, 2017

Are you looking to purchase a property or refinance your home, but are nervous about what lies ahead?

Here’s a step by step guide to get you ready for your new house or loan!

What’s your home loan budget?

We will meet with you to discuss your goals and assess your financial position to obtain your borrowing power. We will do extensive research and present you with the right options so you can be informed to choose your lender and product from a range of options.

If you haven't yet found your dream home but want to be prepared with what you can spend, then we can apply for a pre-approval with your chosen lender.

Purchasing a property, you will also need to locate and select a solicitor and building and pest inspector that you are comfortable with. If you need help with this, we know some trusted locals in ther Southern Gold Coast and Northern NSW who we can recommend.

Go hunting...for your dream house

Time to start searching for your dream property and make an offer. When your offer is accepted, it’s time to sign and date a contract of sale. You'll then pay a deposit to the real estate trust account - this is usually $1,000 or to a maximum of 10% of the purchase price. This depends on the agreement you come to with the real estate agent and seller.

So that you can protect yourself if anything changes, we recommend that your contract is subject to the following conditions if possible:

  • 7 days allowed for pest and building
  • 14 days allowed for finance or 21 days for any complex loans
  • 30 days allowed for settlement or 45 days for any complex loans - minimum!

At the stage where the contract is signed by both parties - seller and buyer - you need to send a copy to your mortgage broker and your solicitor as soon as possible.

It's also important to arrange building insurance for the new property at this stage, we can help you with this and can get you a great deal on this insurance.

Get the loan that's right for you

At this point our Kingscliff mortgage broker will meet with you to discuss your chosen lender and loan product. We will also present you with a preliminary assessment that you need to sign if you are happy to proceed.

It's a perfect time at this stage of the process to review your life insurance needs - income protection, total & permanent disability, trauma, death cover. People often protect their house and car, but forget about some of the most important assets in their lives - their life itself and their ability to be able to pay their bills. We have access to a trusted financial planner who can make sure you are protected!

Time to relax and let us do the legwork for you!

Our experienced Kingscliff processing team is responsible for lender submission, tracking and approval.

We will notify you when your application has been submitted and received by your lender. Every couple of business days, we will update you to keep you in the loop. We don't want you to worry about anything. However, at any stage of the process, you can feel free to give our office a call if you have any questions outside of the updates.

Going unconditional on your home loan

At this stage your loan has been approved!

Our Kingscliff mortgage broking team will email a copy of the approval to both yourself and your solicitor. You will then be able to confirm in writing that you are satisfied with your building and pest report and that you have formally-approved finance to your solicitor. The remaining balance of your deposit will need to be paid to your real estate trust account as per your contract at this time.

Sign on the dotted line

Your loan offer documents will be sent to you shortly after formal approval. Our Kingscliff mortgage broker team will then contact you to book an appointment, and you'll meet with us to run through your documents, ensuring that any questions are answered in detail. Once you're happy with your document details, our in-house Justice of the Peace (JP) can help you sign your documents correctly.

We will also assist in establishing any account or internet banking that is required.

Our mortgage broker will then contact you to discuss the remaining contribution required. Also where this contribution needs to be deposited in time for settlement. At the same time, we will be in touch with your lender and solicitorensuring everything is in the right place for settlement.

Now is when you can start to arrange things such as telephone and your power supply as well as mail redirection and contents insurance.

Ready…Settled…GO!

Your solicitor's agent will attend settlement on your behalf, so all you need to think about is picking up the keys to your new home - and moving in! 

Let our team in Kingscliff at Mortgage Choice help you achieve your property dreams, give us a call on 0425 293 453 today to arrange a time to meet - or you can click 'Book an appointment' on our Homepage to book online with us.

 

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