Deciding to buy your first home is such an exciting time, and the process of getting a home loan can be equally exciting – it’s how you get into your future home after all! So, what can you expect from the loan process?
To begin – find an expert in the field
Your first step in the home loan process is talking to a home loan expert. Your local Aussie Broker is a great place to start. And finish! For over 25 years, Aussie has helped Australians to get the home loan that’s right for them, and they can help you, too.
1. Your home loan appointment
It’s a great idea to come to your appointment armed with the paperwork that will help your broker understand your current financial position. This should include:
- recent bank statements, pay slips and group certificates that provide evidence of your income, spending and your saving history
- details of your current assets and liabilities – such as any current mortgages, personal loans, funds invested, credit card debts, car repayments and so on
- a summary of your usual household and living expenses
- personal ID such as birth certificate, driver’s licence, current passport or citizenship certificate
2. Finalising your application
When you’ve chosen the loan that suits your needs and are ready to begin the application process, your broker can look after all the paperwork for you – easy! And the good news is, generally, you shouldn’t have to wait longer than a few days for an initial decision from your lender.
3. Conditional approval
Expect to hear about your application between 3 to 7 days. If you’ve already found the property you’re hoping to buy, your broker will arrange a valuation of the property with your lender. This process can take 5-7 days, depending on a few factors including the availability of the valuer and how quickly the seller or agent can provide access to the property.
4. Full approval
Congratulations! If you’ve found your dream home you can now sign and exchange contracts, which is handled by your appointed legal representative (a certified conveyancer or solicitor). If you were after pre-approval on your property hunt, it’s time to continue your search! Be warned there might be a time limit on your pre-approval, but your broker will let you know if there is.
5. Review your loan documents
When your loan documents arrive, Aussie will send you a formal letter of offer. It’s essential your solicitor reviews all loan documents. Once again, your Aussie broker will guide you through the process and advise next steps.
6. Sign your loan documents
Once you and your solicitor are happy with the loan documents, its time! Sign on the dotted line and return them to your broker.
7. Confirmation of settlement
Your conveyancer or solicitor will have agreed a date for settlement with the seller’s legal representative when contracts were exchanged. This is typically four to six weeks after signing the Contract of Sale.
8. Finalise transactions
Your Aussie Broker can advise you on finalising all transactions and setting up direct debits to ensure the right accounts are in place and all payments are processed correctly. When all money has been transferred according to your instructions, settlement is complete!
9. Loan and property are settled
That’s it. You’re home! Congratulations! It’s never too early to start thinking about a home loan, and remember – talking with an Aussie Broker won’t cost you anything.
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- Chapter One : Getting started
- Chapter Two : Your Dream Home
- Chapter Three : Money Matters
- Chapter Four : Ways to Purchase
- Chapter Five : Understanding Interest Rates
- Chapter Six : Understanding Home Loans
- Chapter Seven : Lending Sources
- Chapter Eight : Getting Your loan
- Chapter Nine : Choosing a Home
- Chapter Ten : Steps to Settlement