Home Loans: Step By Step

Sitting back and assuming that the home loan process is going off without a hitch is one of the surest ways to find yourself in a heap of trouble. Savvy Australian home buyers educate themselves about the home loan process so they can serve as an added layer of defense against problems.

Step One - The Documents - To initiate the process, you need to provide all of the required documentation and a signed application to your mortgage broker. Make sure to have him or her clearly state precisely what you need to give them in order to avoid confusion or delays.

Step Two - Submission Of Home Loan Application - Having looked over your documents, information and application, your mortgage broker will submit your application to a lender offering the kind of loan you're interested in. Your broker will confirm that your application has been successfully submitted.

Step Three - The Lender's Business - Prior to looking through your application, the lender in question will conduct a credit check and obtain other applicable data about you to gain an ideal about your creditworthiness.

Step Four - Application Assessment - The lender makes a careful assessment of your loan application. As long as everything checks out, a conditional approval should be reached.

Step Five - Notification Of Assessment - Whether your application is approved or denied, the lender will let your broker know; your broker will then pass the information along to you. If a hiccup occurs and your loan application is denied, your broker should let you know why - and whether more information is needed.

Step Six - Property Inspection - The valuer has the property in question inspected, writes a report then submits it.

Step Seven - Property Valuation - After the valuation inspection of the property has been completed and the associated report filed, your broker will advise you that the valuation has been received and held.

Step Eight - Wrapping Up The Loan - If no mortgage insurance is necessary, your lender should issue and inform you of unconditional home loan approval, then draw up contracts. If insurance is required, a formal sign off from the mortgage insurer will be necessary.

Step Nine - Loan Process Complete - Assuming the mortgage insurer successfully signs off, an unconditional home loan approval will be issued. You will be informed of this by your mortgage broker. Next up: settlement!

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