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Five steps to buying your home

Once a decision has been made to take out a home loan, borrowers will commence the loan application
process which is quite similar across lenders. The time frame for loan approvals can range from a few days
to a couple of weeks, depending on your particular loan. As a general rule, the more complex the loan the
longer the application process.

Step 1

Supporting documents, completed applications and all
other necessary information are provided by your to your
mortgage broker. Your mortgage broker then packages
your home loan application and presents it to the lender.
At this stage, they should notify you that your application
has been submitted for approval.

Step 2

The lender evaluates your application by undertaking
credit checks and ensuring that the information submitted
is authentic. Once these checks have been met the
lender’s specific lending guidelines, a conditional approval
will be issued by the lender via your broker. If the lender
requires more documents or supporting information, your
broker should discuss this with you. Your broker will be
contacted by the lender if there are any queries regarding
your application, and they will attend to these concerns
with you.

Step 3

A formal valuation of your property will be undertaken on
behalf of the lender. An inspection report will be submitted
by a valuer and sent directly to the lender to be reviewed.
If it meets the lender’s guidelines, an issuance for an
‘unconditional’ approval will begin. If there are concerns
with the report, your lender will discuss this with your
broker, who will then address the issue with you.

Step 4

If a lender’s mortgage insurance (LMI) is required for your
loan, approval will be sought through the LMI provider.
When this approval is granted by the LMI provider, an
unconditional approval will be granted and the loan
documents will be prepared.

Step 5

The lender will now issue an unconditional approval for
your loan and also start preparing your loan documents.
These will be sent to you from your lender and your broker
will then assist you in executing these documents. These
signed forms must be then sent back to the lender.

For more information on home finance
or the home loan that’s right for you,
call Peninsula Home Loans 1300 559 084

 

Written by

Stephen Bonfield, the Managing Director, previously worked for one of Australia’s major home loan companies as an independent mortgage broker. Steve used this experience to set up his own mortgage broking company - a company that places customer needs at the forefront.

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