If you’re unfamiliar with the home loan process, it can be daunting to know where to start. In this guide we’ll walk you through the steps and share important information that will help you gain faster approval for your new home loan.

At your first meeting with Assembly Finance you’ll be assigned an experienced mortgage broker, who will act as your representative to the banks and lenders. Your broker will assess your financial needs, help you to understand your options and obligations, and provide expert advice to help tailor your application to get a home loan that works for you.

The Application Process

There are 5 stages in the home loan application process:

  1. Pre-Approval. A tentative yes from your financial institution, your Pre-Approval will give you the green light on an estimated borrowing amount. This is important because it helps you bid with confidence when you find a property that you love.
  2. Apply for a Home Loan. After you’ve been Pre-Approved and found your dream property, it’s time for the formal application. If you’re buying at auction, it’s always best to chat with your broker to ensure that you are ready to purchase if you are successful.
  3. Secure your property. Negotiation on the property price and conditions will take place between yourself and the vendor (via the vendor’s agent, and a buyer’s agent if you use one). You will sign the Contract of Sale once you are happy with the conditions laid out within.
  4. Unconditional approval. Once your loan is approved, your financial institution may have additional documents or checks that have to be completed and signed. These can include property valuations, additional credit checks or a range of other things that are required to lock in your loan. Your mortgage broker will be able to help you navigate your requirements at this stage and ensure all of your obligations are met to secure your loan.
  5. Settlement. Your conveyancer or solicitor will assist in arranging a settlement date, on which day the property is finally yours. Once the funds are settled, you are able to pick up the keys and take your first steps into your new home.

To best help your mortgage broker in preparing your applications and navigating the process above, you will need to make sure that you have your documents prepared before you get started. At a minimum, you will need:

  • 100 points of ID
  • 6 months of bank statements for every account in your name
  • Last 3 payslips, or last 2 years of tax returns for self-employed applicants
  • Details of any other loans or credit cards, plus 6 months of statements for each account
  • Proof of any assets that you have listed, such as car registration papers

You will also have a number of different costs that are applicable throughout the process. Your mortgage broker will work with you to obtain the best deal and make sure that you know of any potential costs so that there are no nasty surprises down the line. Fees may include:

  • Property valuation fees
  • Loan settlement fee
  • Discharge of any pre-existing mortgage fee
  • Registration of mortgage
  • Discharge of caveats
  • Loan establishment fee
  • Annual account fees
  • Stamp duty

You may be able to negotiate discounts on some fees associated with your mortgage – this is where a broker with strong industry knowledge comes in handy. It’s also important to consider any additional costs for your property, such as strata fees, that may affect your cash flow after the purchase.

At Assembly Finance we have experience obtaining home loans for clients from different walks of life, including first home buyers, self-employed applicants and investors alike. No matter your circumstances, we can find a home loan to suit you or guide you on the right path to find a loan in future. Book your appointment with a home loan specialist today.

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