How Long Does It Take to Get Unconditional Approval?

How Long Does It Take to Get Unconditional Approval

You might have found your dream home and looking to apply for a home loan, isn’t it? However, before you get home loan, there could be various approval processes you have to go through. There will be conditional and unconditional loan approval that you must achieve first before getting a home loan. Getting your application approved without further documents requirements is an exciting step. It would be an unconditional approval, which means the lender has approved your home loan application and there is no other requirements. Now, let’s explore what exactly unconditional approval is and what steps are involved in getting unconditional approval.

What is an Unconditional Approval?

Getting an unconditional approval from the lender means that they have decided to approve your home loan application and will lend you money your wish to borrow. It simply means that the lender has reviwed your application and decided to lend you money for your home loan to proceed. It is also possible to get conditional approval for a home loan, which is called pre-approval. It means that a lender has considered your finances and they will lend you money for a home loan as long as certain conditions are satisfied. Despite this, if you are a first home buyer, you may be eligible to get first home buyers grant in Melbourne or another state or territory, in which you will have to make 5% deposit for your dream home.

How Long Does It Take to Get Unconditional Approval?

The time it takes to receive unconditional loan approval from the lender can vary – it could take as little as a day or it might take a few days or week, based on how much information the lender has, how much they have for processing applications, and how long it takes them to check required information.

Before you receive unconditional approval, the lender will review all the documents you have give to understand your finances and will also go through other checks such as getting a valuation of the property. Lenders do this to ensure you can repay your loan amount. If the lender is satisfied that you can easily repay the loan amount and are satisfied  with the property valuation amount relating to the amount you have offered, then you’ll get a statement notifying you that your home loan application has been approved. This statement will include:

  • The loan amount the lender is willing to offer you
  • annual interest rate
  • your repayments on a monthly, fortnightly or weekly basis.

Can a Loan be Denied After Unconditional Approval?

After getting unconditional approval, it is extremely rate that your loan will be rejected. Furthermore, you can reach out to Star Homeloans in Australia for more information.

Difference between Conditional and Unconditional Approval

You receive conditional approval at the starting phase of your home loan application when the lender review of finances and financial status. Usually, with conditional approval, the lender needs more information before lending you money to buy your dream home.

On the other hand, unconditional loan approval means that the lender has reviewed all your documents, including your credit score and is willing to lend you money you wish to borrow.

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