Navigating the path to home loan approval can feel stressful. Each application is unique, but with the right approach, you can significantly expedite the process. In this comprehensive guide from your Brisbane Home Loans team, please see some tips to make the process smoother and avoid delays.
Be Prepared: The Key to a Smooth Application Process
One of the primary culprits for delays in home loan approvals is a lack of preparation. To ensure a seamless process, it’s important to gather all necessary documentation in advance.
PAYG Applicants:
- Driver’s Licence – Front & Back
- Either passport or birth certificate
- Medicare Card
- Most recent two payslips each
- Most recent Income Statement for the previous financial year
- 6 months home loan statements
- 3 months savings and all credit statements (most recent)
- Superannuation balances
- Know your assets and their approximate value
- Income statement for investment property
Self-Employed:
- Driver’s Licence – Front & Back
- Either passport or birth certificate
- Medicare Card
- 2 years income tax returns for the individual
- 2 years tax returns for the company/business
- 2 years full financial statements for the business
- 6 months home loan statements
- 3 months savings and all credit statements (most recent)
- Superannuation balances
- Know your assets and their approximate value
- Income statement for investment property
Declare ALL of Your Liabilities:
Attention to detail can make all the difference. Beyond the obvious, such as your income and credit score, there’s a critical aspect that sometimes slips through the cracks—declaring all your liabilities.
It’s easy to overlook that unused credit card or the minor short-term loan you took out ages ago. However, when it comes to your home loan application, transparency is key. Declare every financial commitment under your name, regardless of size or current status.
This includes, but is not limited to:
- Active credit cards, even if they’re paid off
- Minor short-term loans
- Payday loans
- Outstanding After-Pay payments
- Zip Money and other Store Cards
- Student Debt
Neglecting to declare these liabilities may seem harmless, but it can lead to unexpected delays in the processing of your loan application. Lenders need a comprehensive understanding of your financial situation to make informed decisions, and any missing piece of the puzzle can slow down the process.
HAVE YOUR BUDGET HANDY
Your Mortgage Broker needs to list down your daily/monthly living expenses. They will ask you how much you spend approximately on the following items. You can save time by having this handy when you speak with them.
– Groceries
– Entertainment
– Internet/Phone
– Transport
– Insurances
– School Fees
– Private Health
– Clothing & Grooming to name a few.
Anticipate Requests for Additional Information
In today’s financial landscape, lenders exercise an extra layer of caution. It’s not uncommon for them to seek additional information from potential borrowers, even after the initial document submission. Don’t be alarmed if you receive such a request; consider it a routine part of the process.
Prepare yourself for the possibility of being asked for supplementary information, such as extra bank statements or loan details. This step is not an indication of any problem with your application; instead, it reflects the meticulous approach lenders adopt in assessing risk.
Being proactive and swift in providing any requested information can significantly expedite the overall approval process. Consider this phase as a collaborative effort between you and the lender to ensure that all aspects of your financial profile are thoroughly examined.
Connecting with a Trusted Mortgage Broker Early: Your Gateway to a Smoother Process
Most individuals embark on the pre-approval process by reaching out to banks, mortgage brokers, or lenders. The objective is to seek professional advice on getting pre-approved and initiating the process promptly.
Now, the question often arises—do you really need a mortgage broker when you can contact banks and lenders directly? Opting for a mortgage broker early in the process presents a myriad of advantages. Mortgage brokers operate under a Best Interest Duty (BID), a legal obligation to act in the best interest of the borrowers. Essentially, they work for you, focusing on securing the best-suited home loan deal, regardless of your unique financial scenario.
With a mortgage broker, you’re not limited to a single lender. Instead, you receive expert advice on reviewing and selecting from various products offered by multiple banks and lenders. Mortgage brokers guide you through the processes and requirements involved in getting pre-approved for a home loan quickly.
Advantages of Working with a Mortgage Broker:
- No Need to Perform Research Yourself:
- Mortgage brokers handle the research on your behalf.
- Access to Multiple Lenders:
- Brokers have connections with numerous lenders, accessing direct quotes on your behalf.
- Time Savings:
- You don’t have to compare lenders and rates independently; let a mortgage broker compile the information based on your circumstances.
- Professional Advice and Ongoing Support:
- Brokers stay connected with you throughout the pre-approval process, providing ongoing support.
- Fast-Tracking Your Application:
- Brokers, working directly with lenders, understand how to make applications more efficient, reducing the time to get pre-approved.
- Access to More Options:
- Brokers can help you uncover more deals and opportunities by connecting with dozens of lenders simultaneously.
- Insider Knowledge:
- Brokers have insider knowledge of the property market, providing access to some of the best deals from lenders and unveiling new options.
In summary, early engagement with a trusted mortgage broker enhances your home loan application process. Their unbiased advice, broad lender connections, and industry knowledge can significantly contribute to a smoother and more efficient journey toward securing your dream home.
By adopting a proactive approach, being transparent about your liabilities, and leveraging the expertise of a mortgage broker
