1. Pre-qualify
The principal aspect you need to know before you begin searching for a house is the amount you can spend. There is no point taking a gander at million-dollar houses on whereas you can just bear the cost of half of it.
Get an estimate of your borrowing power with our free calculator.
That is the reason the initial phase in our home loan approval process is to apply for a no-commitment pre-qualification. Essentially enter some basic information into our pre-qualify form and get a quick gauge of the amount you might be eligible to borrow.
It’s important to note prequalifying for a loan is not the same as approval. This figure is based on the information you submit. Credit checks and property valuations still need to be performed before you are granted formal approval.
Please taking note that being prequalified for a loan is different to approval. This figure depends on the data you submit. Credit checks and property valuations have to be performed before you are granted formal approval.
Complete our online form for an instant,
obligation-free, pre-qualification assessment
2. Application
You may apply for a mortgage either before or after you make an offer on a new house. Without a signed contract of sale, an application will proceed to the conditional approval stage, but formal approval will not be given until the contract of sale is issued and all conditions are met.
Documentation to check your identification, wages, expenditures, properties, and liabilities must be submitted with application forms. Your lending specialist will tell you exactly which documents we need, but they usually contain the following:
Evidence of income
- PAYG: Recent payslips & employment letter or your tax assessment notices for the last 2 years.
- Self-Employed: Proof of both your own and your business’s earnings.
Details of assets & liabilities
- We’ll need information on your assets and liabilities, as well as your living expenses. Your loan professional will be able to tell you which documents to send once again.
Identification documents
Signed contract of sale
We’ll run loan serviceability and credit tests once we’ve received your application and all supporting documents to see whether you can easily afford to repay the sum you’ve applied for.
3. Conditional approval
If you submitted your application without first finding a home, you now have 90 days to find a new home before the conditional approval expires and you must reapply. Notice that conditional approval is not a guarantee; it is contingent on the purchasing property passing inspection.
We will order a formal valuation of the property if you have already provided us with a signed property contract. The appraisal is performed on-site to determine if the property is appropriate for mortgage financing. A report detailing the property’s value as well as any related risk factors will be sent to us. The final value provided by equivalent sales in the region and the property’s condition.
You will be expected to pay a lender’s mortgage insurance (LMI) premium if you have applied to borrow more than 80% of the property’s value. Before moving to formal acceptance, the application must be accepted for LMI.
4. Formal approval
Your home loan will become unconditional after all conditions have been met, and formal approval will be given. If the selling contract includes a financing clause, formal approval means you are now committed to buying the house.
Your home loan will become unconditional after all conditions are met, and you will receive formal approval. If the selling contract includes a financing clause, formal approval means you’ve decided to buy the house.
5. Settlement
So Money will pay the property’s provider the final settlement payments, and you will be told when this happens. At this point, you should schedule a time to pick up the keys to your new home with the real estate agent.
Our lending experts are available to assist you in the process and answer any questions you might have.
