The home loan application process can be daunting,but it doesn’t have to be. Follow our 10 easy steps to home loan application success.
Depending on the complexity of your situation, this home loan application process may take anything from a few days to a couple of weeks, however as a guide, you should allow up to 14 days for full approval and a further 2-3 weeks for property settlement.
Step 1: Meet with a Loan Market Mortgage Broker
During the consultation process your Loan Market mortgage broker will discuss and help you select the most appropriate features and home loan rate that best suits your finance needs. Once the right loan is selected, the loan application process begins.
Step 2: Loan Application Process
To help make the home loan application as quick and simple as possible, review the checklist below to find out what documents you may need to have ready to apply for your loan:
- Passport/Visa/Citizenship Certificate
- Drivers Licence
- Marriage Certificate
- Medicare Card
- Two most recent payslips
- Copy of employment contract and/or a letter from your employer
- Most recent Payment Summary
- If self-employed, the last two year’s full tax returns
- Proof of existing rental income
- Proof of proposed rental income
- Most recent statement for all savings accounts
- Copy of superannuation statements, share certificates etc.
- Copy of settlement letter from your solicitor if the deposit it to come from the sale of an existing home
- Most recent statement for all credit cards, personal loans, leases etc
- Copy of contract of sale for property being purchased
Your Loan Market mortgage broker will assist you getting all the necessary documentation for your home loan application, and will lodge the loan application with your selected lender.
Step 3: Loan Assessment
The lender will assess your application to determine whether you meet their credit requirements. This process includes confirmation of your income and employment and a credit reference check. Your supporting documents are also verified at this time.
Step 4: Conditional Approval
You are now half way through the home loan application process. Your Loan Market mortgage broker will receive conditional approval on your behalf. The lender will also outline any matters that need to be addressed before they can issue the unconditional loan approval.
Step 5: Valuation Report
Once your loan is conditionally approved the lender may order a valuation on the property you are purchasing.
Step 6: Lenders Mortgage Insurance
If required, your lender will now submit your application for a Lenders Mortgage Insurance (LMI) assessment.
Step 7: Unconditional (Full) Approval
Once LMI has been approved (if applicable) the lender will issue unconditional home loan approval and a formal letter of offer will be issued to your broker. The final loan documentation is issued to your solicitor/conveyancer to be returned to the lender once completed.
Step 8: Insurance
There are two types of insurance you should consider:
- Home and contents insurance provides cover for a range of events such as theft, storm damage, fire and more.
- Life/income protection includes a range of covers to protect you by paying a lump sum upon death, terminal illness, or in the event you suffer a total and permanent impairment and are unable to work.
We have a range of offers to help cover you, your property and your home loan. You may need to start your home loan insurance cover prior to settlement.
Step 9: Loan Settlement
Your solicitor/conveyancer will liaise with the lender to schedule a settlement date. The first repayment on your loan will usually be required one month after the settlement date.
Step 10: Congratulations, welcome to your new home.