Once we receive an initial enquiry from you about taking out a home loan, our Mortgage Broker will ask you a few simple questions to about your situation, your needs and objectives for the loan. From here we will make a preliminary assessment as to eligibility for a loan.
If at this stage, you agree to work with us as your broker, we will ask you to complete a Fact Find form, complete a privacy statement and read through a document called a Credit Guide.
Once you’ve have completed the Fact Find form, we will also request supporting documents such as your ID, pay slips and bank statements. By giving us all supporting documents in one go, it allows us to give you a quick and accurate assessment. Lenders assess your application by evaluating the risk involved with repaying the loan.
Once we have collected all your details, we will undertake a preliminary assessment of your situation that includes calculating your borrowing capacity and identifying some pricing of suitable loan products for various lenders - usually 3-4 loan options.
Lenders will look closely at your credit history and will request to see proof of your assets and liabilities, including savings, shareholdings and motor vehicles. Lenders often differ in their requirements, but as your mortgage broker, we can advise you of the specific paperwork required. Some lenders, for example, ask for documentation relating to insurances and personal cover to see whether your assets are protected.
Once you've chosen the loan option, we will prepare and submit your application to the lender. There will be a number of final documents to sign, including another privacy form from the lender.
if you have already purchased a property, a valuer will be appointed to inspect the property. Where possible, we try and order upfront valuations, which fast tracks the process - enabling the lender to go straight to formal approval.
If your application meets our the lender's criteria it will be approved. Sometimes the approval may come with conditions and be subject to meeting certain conditions. The approval will also have an expiry date - usually between 3-6 months.
If you haven’t found a property to buy yet, then this can be issued as a loan pre-approved by a lender. Securing a pre-approval for a home loan gives you confidence, as you will know what your spending limit is. It also demonstrates that you are a serious buyer - that you have done your homework and are ready to proceed with a purchase.
The loan contract documentation is issued to your lender. We recommend that these be explained to you by your solicitor or conveyancer to make sure you fully understand them. Once satisfied with the documents, you’ll need to sign and return them to us.
Settlement occurs when ownership of the property passes from the vendor to you. The exact steps of settlement varies from state to state so, once again, it is important that you engage the services of a solicitor or conveyancer. If you are refinancing another property, settlement will be timed so that the loan will be repaid (discharged) at the same time.
If you feel ready to ready to buy a home, contact us or telephone 1800 265 546 and one of our mortgage brokers will assist you to find a mortgage solution that matches your needs.
Reduce your outstanding debts and improve your assets: liability ratio. This includes credit cards, personal loans and even store cards. Don’t take out loans to purchase unnecessary items like clothing, a holiday away or a new phone. All these things lose their value over time and bring you no long-term financial returns. Rather, invest in things that will increase in value over time like your home or your children’s education. Learn More
A demonstrated history of on-time payments is also a great idea as it will reassure the lender of your ability to re-pay your home loan. Supply statements such as credit card payments, car loan repayments and so on to assist.
As many lenders require a record of savings history as part of the criteria for applying for a home loan. Consider opening a high interest savings account or term deposit to assist in growing your deposit faster.