Getting approved for a first home loan in Australia can take several weeks or even months, depending on a range of factors.
Q: How long does it take to get approved for a first home loan?
A: There are a few steps in getting your first home loan approved
- Pre-approval – Pre-approval is an indication from the lender that you are eligible for a loan up to a certain amount, subject to certain conditions. Pre-approval can take anywhere from a few days to a few weeks, depending on the lender and the complexity of your financial situation.
- Loan application – Once you’ve found a property and have made an offer, you’ll need to formally apply for a home loan. The loan application process typically involves completing an application form and providing supporting documentation, such as payslips, bank statements, and tax returns. The lender will also conduct a credit check and may request additional information. The loan application process can take several weeks, depending on the lender and the complexity of your financial situation.
- Evaluation – After you’ve submitted your loan application, the lender will need to conduct a valuation of the property you are purchasing. The valuation process can take several days to a few weeks, depending on the availability of local valuers and the complexity of the property.
- Approval – Once the lender has assessed your loan application and valuation, they will make a decision on whether to approve your loan. Loan approval can take anywhere from a few days to a few weeks, depending on the lender and the complexity of your financial situation.
- Settlement – It is the process of exchanging funds and legal documents to complete the purchase of the property. Settlement can take several days to a few weeks, depending on the availability of lawyers and other parties involved in the transaction.