Are you looking to take on your first mortgage? Here’s some common procedures and what to expect.
While inspecting open houses and looking to buy your property, you should also engage with a mortgage broker to check your financial status and borrowing capacity so that you will have the greatest confidence when the auction hammer falls.
So here’s the mortgage application process for new purchases:
1. Engage with your broker
Discuss your purchase intentions, formulate strategies, evaluate income and expenses, check borrowing capacity (apply for pre-approval from lenders if required)
2. Fill out some forms
Sign and return privacy consent form and fact-find documents (personal information) provided by your broker
3. Check and sign essential documents
Review and sign preliminary assessment document, credit guide and credit proposals provided by your broker.
- It will contain your personal information that you should ensure is accurate.
- It will contain loan products recommended by your broker that you should
understand and agree to.
Sign these relevant documents or check with your broker if you have any questions
4. Purchase your desired property
With your borrowing capacity in mind, purchase your property. inform your broker on the settlement period as indicated by the contract of sale.
5. Your broker will start the application process
Send relevant documents required by the mortgage lender. Your broker will provide a list of documents required, often including: payslips, tax returns, passport/driver's license, contract of sale, rental agreements, bank account saving/transaction history, etc.
6. Send any additional document required
There may be some additional documents required by the lender during the application process.
7. Application process success
The loan is settled, where both parties and solicitors will be informed.
8. Official ending of application process
You will receive emails and documents about the settled loan, it will often contain a new bank account for repayments (and/or credit cards & other accounts depending on the loan product).
In NSW, the settlement period of 42 days is fairly common, meaning that your broker should have the loan settled within this period. From discussing with your broker to loan settlement, the entire period should take 2-3 months.
Have questions about the application process or wish to consult the professionals?
MoreMore Finance can help you find the best home loan products, providing a worry-free experience during the application process and help secure the right mortgage loan for you!
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