How the Home Loan Process Works.

Step 1 - Selecting the right Loan for you

A myriad of lenders, loan types and products are on the market. Our brokers will ask you many questions about your current and future circumstances and your finance needs to determine the right lender, loan type and product for you.

All your loan product's hidden costs and facilities will be explained to you. This includes the application and discharge fees, which can differ wildly between lenders. Finding and buying a home can involve extra costs equivalent to 5% to 7% of the purchase price. These fees may include – application fees, stamp duty, mortgage insurance, solicitor fees and valuations.

STEP 2 – Submitting your application to the lender

When applying for any home loan, lenders require certain information and documentation.

This information will differ depending on the lender and loan product. Documents to verify your income and asset/liability position may include:

• Payslips

• Letters from employers

• Tax assessments

• Tax returns

• Evidence of government benefits

• Land and water rates notices

• Statements of existing home loans/personal loans/car loans

• Credit card statements

• Identification

Your broker will advise you of what is required.

Additionally, a sales instruction from the sales agent or a contract of sale from the solicitor will be required for a property purchase. A letter evidencing the expected weekly rent may be required for investment properties.

Your application can only be submitted to the lender once all necessary documentation is provided.

STEP 3 – The approval process

Once the lender receives your application, several initial checks are conducted. These include verifying you can ‘service’ the loan, a credit report and, in some cases verification of your employment status by your employer. If valuations are required, they will be ordered. If the loan is subject to mortgage insurance, your application, credit report, and valuation report will be sent to the mortgage insurer for assessment. Some lenders will run a title search before approval. In the ACT, this can take up to 72 hours.

STEP 4 – You’re approved!

Once your application is unconditionally approved, we will forward confirmation in writing to you and your solicitor (in the case of a purchase).

The exchange or refinance process begins here. In the ACT, building insurance is recommended on your new property at the time of exchange.

STEP 5 – Your loan offer contract and mortgage documents are prepared

Your lender will issue these documents to you. However, your Broker will be in touch to make an appointment (if required) with you to take you through the documents and explain in detail the terms and conditions of the offer and the features of your loan product.

If you understand your offer and are happy with your loan offer, you can sign your documents at the appointment. Alternatively, you can take your loan offer contract away for further consideration.

Once signed, your documents will be checked for correctness and completion by Home Loan Emporium and subsequently returned to the lender.

STEP 6 – Booking settlement

If you are purchasing, it is your solicitor's responsibility to book and attend settlement on your behalf. In the case of refinances, Home Loan Emporium will track the settlement of your loan on your behalf.

STEP 7 – Settlement

Once your loan settles, we will advise you and your solicitor.

STEP 8 – Post settlement care

After your loan settles, we will contact you to ensure you know when your first repayment falls due and where it will come from. We will take the time to ensure you are happy with your loan. Home Loan Emporium will contact you throughout your loan life to ensure it remains the best product for you.