Making the decision to purchase or build your first home should be a memorable experience and one that is enjoyable and as stress-free as possible.
“To give yourself the best opportunity for a loan to be approved in a timely manner, make sure you disclose all necessary financial information to be included in your application.” - Craig Baumanis, Director, Voyage Wealth.
So how long should it take to approve a loan? Every application is unique; there is never a clear answer. It really depends on the complexity of the application and how well-informed the bank is. However, there are several things you can do to speed up the approval process:
Disclose all information
When you sit down with your broker, ensure they have a thorough understanding of your financial situation. All relevant personal information, income, assets and liabilities should be disclosed and clearly communicated.
For a bank to start assessing your loan application they will require evidence of the information stated. Every lender is different, however they will not start to look at your file until they are in possession of the minimum documents required. If you are supplying scanned copies ensure they are clear and legible.
Beware of specials
Remember, when banks advertise competitive offerings you’re not the only one in the queue. If you are recommended a competitive home loan, make sure you ask the broker or banker what the turnaround time is. In these situations many banks prioritise purchases over refinances. However, you may be in for a long wait regardless.
Every bank is different, but not all lenders require a full valuation at application time, depending on the situation. This can save a considerable amount of time. These can also be prepared upfront at no cost so you can lock the lending ratio in before you submit your application. Having to change banks due to unexpected low valuations can cause lengthy delays. Check with your broker first.
A great finance broker will help you navigate through this process to ensure the loan is approved in a timely manner and your pathway to home ownership is as enjoyable as possible.