Home loan application to approval - what is the process?

November 28, 2014
Annette Kennedy

 Step one – “the chat”

 If you need finance to buy your home, you’ll need to submit a loan application. John Kennedy of Mortgage Choice in Mudgeeraba can help with this.  At your initial appointment, which takes around one hour, you will discuss your financial aspirations and possibilities and choose a loan product that is right for you from one of hundreds John has access to.


Application lodgement

The next step is to lodge the application.

Once John has all your paperwork he will lodge your application with your chosen lender.  This process occurs within a few hours. 

The paperwork varies from lender to lender but typically you are required to provide proof of ID, statement of financial commitments (e.g. car loans), proof of savings and proof of income.


Contract of sale

A copy of the contract of sale containing your property’s details is not required upon lodgement, if you are seeking a preapproval but if you have signed a contract then we will need the contract at lodgement so that the bank can order the valuation of the property.

Sometimes your dream home falls into your lap and time is of the essence but sometimes you have plenty of time to hunt around.  If time is on your side speaking to John and obtaining a pre-approval will give you an idea of the maximum amount you can afford. Having a loan pre-approved (typically valid for 3 months) is especially handy at an auction.  Keep in mind, if your circumstances change from the time of pre-approval until you find a property, pre-approval may be withdrawn by the lender.

As soon as you find the property you wish to buy, provide John with the contract of sale so the valuation and mortgage insurance process outlined below can begin


Lender approval process

The lender assesses your application, which generally takes up to 1-3 business days. The lender then provides their response to Mortgage Choice in Mudgeeraba and we will let you know your loan’s status.


Property valuation

Almost there….

The lender typically orders the valuation, which is usually completed in around 1-3 business days, subject to availability of the property for inspection.


Mortgage insurance

Your lender may require mortgage insurance approval from its mortgage insurer. This generally takes place within 24 hours of receiving the property valuation.


Unconditional approval –Green Light

Finally, your lender confirms with Mortgage Choice in Mudgeeraba the unconditional loan approval and you receive your good news to go ahead with the loan if you wish.

 If you are in the market for a home loan,  whether for a new home or an investment,  give your trust local Gold Coast mortgage broker, John a call on 5559 2563 or email on john.kennedy@mortgagechoice.com.au and have “the chat” .

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