The Home Loan Process
What you need to organise when applying for a home loan
Purchasing a home is about the biggest financial decision you will ever make and it’s important to be as ready and prepared as possible to ensure the right result.
You will need to have your paperwork in order so you can enter into discussions with a home loan finance broker and prepare a comprehensive profession application. It also necessary as it will assist with choosing the right lender and the home loan product selection process.
Applying for a home loan
When you are prepared to purchase a home, the first step in your home loan application is to speak with your broker. It is preferred you do this before making an offer on a property, so that you have conditional approval up front – this may also assist the seller in making their decision to accept your offer as you are already pre-approved.
Documents you need
You will need a number of documents and papers on hand when you speak to your finance broker. These include the following:
- Identification such as a Driving Licence, Passport, Residency Visa, Birth Certificate and Medicare card
- Proof of how much you earn, such as payslips, tax returns
- Copies of bank statements showing the savings you have and your house deposit
Once you have these documents in order, you are ready for the application process.
Applying for a home loan
The next step is to speak to with a licenced and qualified home loan broker and discuss your home loan needs and the preferences that suit you best – a good broker should not charge you for this service as they are paid a commission from the lender. They will go over your paperwork to make sure nothing is missing and that everything is in order. They will run a credit check on you and then give you an estimate for the type of home loan you can afford.
It is at this stage they will provide you with recommended lenders and home loan products that are suitable and arrange a conditional approval. You will also be advised on all the settlement costs and government charges that you will be required to pay so there are no nasty surprises at settlement. This will help you to make an offer on the home you would like to buy.
Once you have an accepted purchase contract for your new home loan the finance broker will arrange for the home loan to be unconditionally approved. You will then receive a letter of offer and proceed to settlement.
You will need to choose your preferred settlement agent and we always recommend that you have a professional to conduct a building inspection if it is an established home. This will help to ensure the home you buy doesn’t have any structural problems.
Good luck and happy house hunting!