Step 1: Pre-approval
The first step in getting a home loan is to get pre-approved. This involves submitting an application to a lender and providing information about your income, debts, and assets. The lender will use this information to determine whether you’re eligible for a home loan and how much you can borrow.
Getting pre-approved can take anywhere from a few hours to a few days, depending on the lender’s processing times. Once you’ve been pre-approved, you’ll have a better idea of how much you can afford to borrow and what your repayments will be.
Step 2: Property valuation
Once you’ve found a property you want to purchase, the lender will need to conduct a property valuation. This involves an independent valuer assessing the value of the property to ensure it’s worth the amount you’re borrowing.
The property valuation process can take anywhere from a few days to a few weeks, depending on the complexity of the property and the availability of the valuer.
Step 3: Loan processing
Once the property valuation has been completed, the lender will process your loan application. This involves verifying your income and employment, checking your credit history, and reviewing your financial documents.
The loan processing stage can take anywhere from a few days to a few weeks, depending on the lender’s processing times and the complexity of your application.
Step 4: Loan approval
Once your loan application has been processed, the lender will make a decision on whether to approve your loan. If your loan is approved, you’ll receive a loan contract that outlines the terms and conditions of your loan.
The loan approval process can take anywhere from a few days to a few weeks, depending on the lender’s processing times and the complexity of your application.
Step 5: Settlement
The final stage in getting a home loan is settlement. This is when the lender provides the funds for your home loan to your solicitor or conveyancer, who then completes the purchase of the property.
Settlement can take anywhere from a few days to a few weeks, depending on the availability of your solicitor or conveyancer and the complexity of the settlement process.