Home Loan Approved

Getting your Home Loan Approved

Outlined here are the key processes a home loan application typically travels through toward approval. Depending on the complexity of your situation, the time from the initial meeting with your mortgage broker to a final approval will take anything from a few days to a couple of weeks. A good mortgage broker should take you through this process and assist you to ensure it runs smoothly.

Credit Score

Understanding how a lender's credit scoring system works can make the home loan process a lot easier for you and make the difference between a successful application and a failure.

Once your loan application is received, most lenders will now process it by loading your information into a Credit Scoring system. This is usually done by loading nearly every line of your application form and giving it a weighted score. If your score passes a pre-determined level, you will more than likely be 'conditionally' approved. If your application is in order, 'conditional approval' generally means you are approved, subject to property valuation.

Should you not pass the computer scoring system; your application will then go to a (human) credit manager. At this stage, they will manually assess your application and ask for additional information in areas that need clarification. Often, it is in this situation where a good mortgage broker will prove their worth.

Proof

You will need to prove your income and assets liabilities, residence, savings and identity for a standard home loan. No-documentation and low-documentation, however, require limited or nor proof of income. Additionally, you must provide proof of identity – this is not negotiable and is required by all lenders regardless of the type of loan you are taking out.

Credit Profile

Your lender will also take into account your credit history. For this reason, it is wise to retrieve your credit file and determine if there are any outstanding issues that may hamper your chances of getting your loan approved. Visit our credit file and bad credit history pages for more information on credit profiles.

Property Valuation

Your home loan approval is considered conditional until the property you intend to purchase has been valued by the lender. This will typically be conducted by an independent valuer who will assess the property and provide the lender with a report. The lender will then check that this value is within the parameters of the conditional approval amount, and if it is, sets the loan to unconditional approval.

It Is Important To Use a Good Mortgage Broker

All kinds of things go right and wrong through the home loan application process and the best way to ensure yours goes smoothly is to engage a good mortgage broker. Typically their services cost you nothing and they are very useful when you need things explained or forms chased up at the lender. to sign off authority and approve the loan. Good brokers know their lenders' products and policies and understand how they work. They understand how a lender’s credit scoring system works and can help you provide the correct information and negotiate on your behalf.

More Information

If you would like more information on getting your home loan approved or home loan options that are in your best interest, call us on 13 LOAN (or +61 2 9249 3739 for international callers) or email us the form below and we will return your contact within 2 business hours.

More information or help

For confidential assistance with your home loan or to talk to your local mortgage broker, call us at any time on 13 LOAN or call our direct line on +61 2 9249 3739.

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