If you have never been through the home loan process, you may be unsure of what to expect and the journey might seem daunting. To help guide you along the way and make it as smooth a process as possible, we’ve mapped out some of the key steps.
Make an appointment with a mortgage broker
When you are new to the real estate world, it is especially important to partner with an expert who can understand your home ownership dream. A mortgage broker has access to a range of loan options, and can sort through these to find one for you. The most important thing to remember in your first appointment is to ask as many questions as possible until you are sure you comprehensively understand the home loan options available and have enough information so you can determine which is the right option for you.
Prepare your home loan application
You will need to put together a range of documentation as part of your home loan application. Your mortgage broker will provide you a comprehensive list, but you should have proof of identity, salary information, bank statements and information about your existing debts and expenses at the ready.
Following your application, your lender will first provide you with conditional approval while they conduct a credit check and following this, you will receive unconditional / full approval which is the formal agreement signifying your home loan application has been given the green light.
Secure the property
You will make an offer on a property either via a private sale or auction. Your offer only becomes a binding legal commitment when the Contract of Sale (or Offer of Acceptance if you are in WA) has been signed by both parties. The Contract will confirm sale price as well as terms and conditions, and it is generally subject to lender approval and a building and pest inspection. On settlement day, you will need to have a solicitor or conveyancer present to oversee the signing of the contract.
Keep in touch
Once you have happily moved in to your new home, it is important not to forget about your loan. Stay in contact with your mortgage broker, and over time check in on the state of your loan and consider whether you would like to re-evaluate or discuss new options.
Choice Home Loans brokers are available to talk you through the home loan application process.
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This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the articles is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).