The home loan approval process

Most of the borrowers are often keen to know what will happen next and also how long does it take to have an outcome. There is no one-size-fits-all answer. If an application is solid and strong, it will get approval in shortest time.

The amount of time for you to receive a response for your home loan application can be different between two days up to two weeks depending on a range of factors, such as whether you have provided enough supportive documents with your application, it will take much longer time if the assessor request to provide supportive documents because it didn’t attach to an application while submitting the application.

For a reasonable straightforward application, the shortest time to a final approval can be as less as 48 hours. Depending how complex the application is, it can take much longer than that.

Before the lender offering conditional approval, the lender will need to make an assessment of your application and conduct a valuation of the property. If the valuation can be done in advance, it will definitely speed up the loan application process.

There are few things that can result in an application not being approved based on valuation, like zoning, property size or the condition of the property is worst and the cannot realise its market value.

The lender will also need to assess your capacity to repay the loan amount you have requested. This is where all of the information about your salary and your liabilities come into consideration. The accurate and complete information can definitely help to shortest the time of getting approval.

During credit review by the lender, it normally includes some bit of to and fro between the customer, broker and the lender due to some further information request by the lender assessor as the credit review takes place.

Your potential lender will make an overall judgment of you as borrower and the complexity of your financial history will affect how long the application process going to takes.

The biggest mistakes for some borrowers are they didn’t disclose all of their liabilities or any adverse information on a credit history. That normally will cost much longer time to get approval or in the worst case, the lender might decline the application.

Due to the complexity of the application process, that is a great reason why you would sit down with us and we will explain all of that to you.

Once the application has been submitted, you can expect us to in touch with you to update you on the progress and to notify you the outcome. If your application is approved, we will also inform you when to expect a formal letter of approval from your lender.

Speak to Kevin on 0415820016about how he can simplify the home loan application and approval process, and create the strongest realize for you.