The process of getting a home loan can seem confusing and stressful, particularly if you’re waiting on approval to make a home purchase unconditional. We’ve caught up with one of our branch managers to find out the process they go through when a customer applies for a loan.
Having a meeting over the phone or face-to-face with a lending specialist is a great way to start. We will be able to chat to you about what you are looking for, the types of products available, the fees and interest rates associated with each and what it will mean to have a mortgage for you financially. Most importantly we will then be able to offer you a product based on your needs. This is also a great time to discuss the amount of money you want to borrow and how much you have for a deposit, as this will impact your LVR (loan to value ratio) and could determine available interest rates and extra charges, such as LMI (lenders mortgage insurance).
Make sure you take the time to ask your lending specialist to explain anything along the way - as no question is silly - especially when lots of lending jargon could be involved.
Once you’ve decided on the right product based on your needs you then have the option of applying for the home loan. Your application will be filled out and loaded onto our system. At this time forms will need to be signed, and a valuation of the property will be ordered if needed.
Once we have all the necessary details for the loan application (check out our home loan application checklist), it will be submitted into our system for assessment.
When assessing a loan, we look at your ability to repay the loan including interest. For more information about this check out How much can I borrow.
You will be notified promptly and informed of any conditions, for example, subject to a satisfactory valuation of your property. If the application is a re-finance then you will need to complete and return a discharge form.
Once your loan has been approved the loan documents will then be prepared by our credit team. Then, once the documents are prepared, you will be contacted to collect them from the branch. If you live Interstate your documents will be posted to you.
The original documents will need to be signed by all borrowers and/or guarantors and some of the documents will also need to be witnessed by a qualified witness, such as a Justice of the Peace. There may be a deadline for the return of documents. Check with your lender to see if any will apply. If you live interstate the documents will need to be sent back directly to our credit department.
Once the documents have been received by our Credit Department, they check to ensure all documents have been correctly signed, witnessed and returned. They will also liaise with your Solicitor/Conveyancer to obtain any other documents required for settlement (eg. copy of Transfers, cheque directions).
If you are purchasing a property we work on the specific settlement date as outlined in your contract of sale. If your loan application is for re-financing then the settlement date will depend on the timeframe stipulated by your previous bank. There may be a minimum notification period for them to have the documents ready to settle on their end which could affect the settlement date.
Remember, we offer a pre-approval service so you can shop for a property with more confidence. To organise a home loan pre-approval call 13 14 22 or drop into your nearest branch and chat with one of our lending specialists.