Getting ready to buy your first property is a major milestone in someone’s life. In order to get a home loan, you’ll be better equipped for success if you understand the process. Read on for some things to know and information you’ll need.

Do You Know the Home Loan Approval Process?

The typical process involves a systematic approach to gathering information, reviewing information, and then providing you with a decision. Once you’ve been told your home loan is approved, you’ll also have documentation to work through and then the final settlement will take place.

Whether you choose to work with a big bank or with a small financing company or a local Kwinana, Rockingham, Cockburn or Baldivis mortgage brokers and home loan specialists who can help you find a loan by shopping around with lenders on your behalf, you’ll want to gain a full understanding of the process and your part in it. The right approach will alleviate your stress levels and help you be best prepared for any and all aspects of the process.

Here are some things to keep in mind:

• There are several types of home loans available including those with low documentation and no documentation. If you go one of these routes rather than a traditional route, you can expect to pay a higher interest rate plus a larger down payment requirement. The more documentation you can typically provide, the better. Proof of income is typically important, and if you can illustrate that you have savings and is responsible and stable, this will work in your favour.
• Your credit will be checked during the process. It’s to your advantage to check your credit before applying for a home loan so that you can have an opportunity to maximise the chances of looking good on paper.
• Getting a pre-approval is smart. If you know–before house shopping–that you can qualify for a home loan and what amount you can qualify for, you’ll go into the process with confidence and with a competitive advantage over buyers who may be competing for the same property as you are. If they have a ‘conditional on finance’ term in their offer and you’re already approved for a home loan, you’ll have a greater chance of being favored over other applicants.
• If you decide to shop around for a mortgage, be aware that everyone looking at your credit could impact the way you look on paper to a lender. That’s one of the benefits of getting a mortgage broker. The mortgage broker is the only one to access your credit report. Information is then shared with lenders, meaning there is just one inquiry against your credit instead of several.
• Are you wondering how long a home loan approval will take? It could take 2-4 weeks. This is another reason why a pre-approval makes good sense.

Do you want to understand more about the process of applying for a home loan? Justin Smith is a mortgage specialist with Smartline Mortgage Brokers Rockingham who serves Rockingham, Kwinana, Cockburn, Baldivis and the surrounding area. Justin would be happy to help you so that you understand the home loans approval process and that you can get a favourable home loan pre-approval that makes your home search easier.

There’s another thing that’s important to know:

When you leverage the expertise of a mortgage broker, you don’t have to pay for it. A mortgage broker is paid by the lender. For that reason, why not leverage the benefit of their expertise to help you understand the process and to help you maximise the chances of getting a great deal?