Securing a pre-approved loan before you begin your property search offers numerous advantages. It not only clarifies your financial boundaries but also provides the assurance that you can act swiftly when you find a property that captures your interest. This readiness often places you in a stronger negotiating position compared to other potential buyers who lack pre-approval.
Working with a mortgage broker simplifies this process. A broker handles all the paperwork, lodges your loan application, and identifies the most suitable lender for your needs. This allows you more time to focus on finding the ideal property. Typically valid for 3-6 months, a pre-approved loan accelerates the process of arranging your unconditional finance, enabling quicker contract exchanges and securing your dream property.
Understanding the Loan Application Process
Engaging with our knowledgeable and professional team costs nothing, and they can swiftly determine your borrowing capacity and identify the loan that best meets your needs. They are also ready to address any queries about the application process.
Advantages of Using a Mortgage Broker
A mortgage broker sources the most advantageous and suitable loan for your situation. Unlike bank representatives, brokers have access to a broad array of lenders, ensuring that you receive the best loan for your specific circumstances. Brokers handle all negotiations with the bank, prepare and submit your application, and manage all necessary paperwork and documentation.
Cost of Using a Finance Broker
There is no charge for using a broker. Instead, brokers typically save you time and money, as banks pay them a commission for bringing in business.
Documents Needed for Finance Applications
To apply for finance, you will generally need to provide the bank with details of your income, assets, liabilities, and identification along with a completed loan application. Typically, banks will request:
- Two recent payslips (if you are a salaried employee)
- Financial statements and tax returns (if you are self-employed)
- A recent bank statement (to verify your savings)
- Recent statements for any existing loans or credit cards (to confirm existing debts)
- Identification (Driver’s License with photo, and/or current passport, Medicare card, and credit card)
- Requirements for verifying income and liabilities can vary between banks, so keeping your records up-to-date and readily accessible is advisable.
Loan Approval Timeline
Most pre-approvals take between three to five days, depending on the bank used and the complexity of your loan application. The pre-approval is the initial step and is always conditional upon the property’s valuation.
Once a contract to purchase a property is signed and finance is needed, the process to secure finance approval typically needs to be completed within 7-10 days. If you already have a pre-approval in place, we may only need to conduct a quick valuation. In some cases, a full valuation might not be necessary, as some banks accept the contract as confirmation of the property’s value.
