Taking a home loan can feel like a daunting task to those who have never bought a home before and taken a home loan. Many times, people are afraid of taking a home loan because of the various steps involved in the home loan process, and they lack information about home loans. However, you don’t need to worry about home loans when you seek help from Star Homeloans. We’ve made the home loan process easy to understand. In today’s blog, we’ll discuss the steps involved in getting a home loan.
The Process of Home Loan Approval
Many of you may find the home loan approval process a daunting task, especially because a home loan is a huge financial commitment an individual will make in a single transaction. Now, let’s take a look at the steps involved in getting a home loan:
-
Meet a Home Loan Broker
If you are a first home buyer, you’ll probably need to seek help from a home loan specialist like Star Homeloans to know about the home loan process. When you contact a broker, you need to talk about:
-
-
Your current financial situation, including details of your expenses, income, debts, and assets.
-
The location where you would like to buy a home.
-
The type of home you are looking to buy.
-
Based on the information, brokers will either offer you various home loan options that match your requirements or suggest alternative plans that may better suit your goals. Apart from this, brokers may tell you about various government grants and schemes. Some schemes support a home loan with 5 per cent deposit and 2% deposit, terms and conditions may apply.
-
Collecting Documents for Home Loan Application
After deciding on a particular home loan product, you need to collect all the required documents. These documents are important for your home loan application as brokers will give those documents to the lender to show your financial position, including regular expenses, income, and how much you are able to afford in home loan repayments.
-
Submit Your Home Loan Application
After providing all required documents to the broker, it’s the right time to submit your home loan application. Here, a broker for home loans plays an important role as the broker will be responsible for making sure that you have correctly filled out the application and attached the required documents. Brokers will be responsible for submitting your home loan application on your behalf and keep you updated on any information from the lender.
-
Receiving Conditional Approval
Receiving what’s known as “conditional approval” or “pre approval home loan” from the lender will probably be your next step if you haven’t already decided on the house you want to purchase. If you receive conditional approval, it means that the lender is considering lending you money for a house but needs more details first. It’s merely a sign that you’ve passed their initial credit checks and creditworthiness testing, it’s not a formal or final approval.
-
Property Identification and Valuation
After getting home loan pre approval from NAB or another bank, the next step is property identification and valuation. When you locate the ideal property, the lender will hire a qualified property valuer to evaluate it and estimate its value and risk level. Depending on the availability of the valuer and when the seller makes the property accessible for valuing, the property valuation procedure may take a few days. The lender will probably get in touch with your broker soon to grant unconditional permission if they like what they see.
-
Receiving Unconditional Approval
After the property’s valuation, if the lender is satisfied with the home in question and nothing has changed about your financial situation since you were offered conditional approval, then they’ll offer you unconditional approval on your home loan. Generally, home loan processing time is around four to six weeks.
-
Reviewing the Loan Documents and Letter of Offer
After providing you unconditional approval, the lender will send you your contract of loan, a formal letter of offer, and supporting loan documents through your broker. You’ll generally review those documents thoroughly to ensure everything is in order.
-
Settlement Day
If you are buying a property, your conveyancer/solicitor will organise a settlement with the lender, according to the settlement date.
-
Home Loan Completion
If you choose Star Homeloans mortgage and home loan services, then even after completion of your home loan, we’ll stay in touch with you to ensure your home loan is the right solution. Even if you are looking for a home loan without deposit, then you can get an appointment to discuss this.
Conclusion
The blog shares a home loan approval process flowchart to help you know what steps are involved in the home loan process. Moreover, you can ask one of our experienced brokers at Home Star Home Loan to get a home loan.
