The time between your initial contact with your broker and loan approval cannot be predicted because each home loan application is different. However, there are a few things you can do to make the process go smoothly.
The most frequent cause of a delay is a lender’s turnaround time to assessment, particularly when some lenders have competitive offerings and experience higher application volumes. However, a lack of planning can make this delay worse.
- Be prepared
Every financial factor must be considered by a broker when determining your ability to make loan repayments. Many brokers require references from your employer, group certificates or tax returns, records of any investments or shares you might have, in addition to the obvious paperwork that must be submitted with an application, which includes acceptable identification and pay stubs as proof of income. If you are self-employed, you will need to organise additional documentation to prove your income, such as financial statements showing your company’s profit and loss for the previous two years.
Bank statements from the previous few months will also be required by lenders so they can track your spending and saving patterns. Most importantly you must disclose all relevant debt information.
- Disclose all information
lenders want evidence that you can manage the loan’s responsibilities, such as a stable job, a good credit history, and a debt-free financial outlook. Make sure your broker has a thorough understanding of you as an applicant, including appropriate identification of all borrowers, to avoid back and forth requests, which can delay your application. Provide your broker with all necessary supporting documentation up front, have accurate, up-to-date knowledge of your financial situation, and be as specific as you can about your needs and goals. Your broker must not only have access to all of your financial information, but also take reasonable measures to confirm it.
- Skip the valuation queue
Depending on the property and lending institution, not all applications necessitate a valuation; skipping this step can save a lot of time. If your lender of choice accepts it, you can also save time by having a valuation completed before submitting your application but check with your broker first.
Pointer Finance is your smart guide for everything to do with residential, self-employed, and SMSF loans. We’re experts in personal lending so you don’t have to be. We’ll keep an eye on the future while finding you competitive, flexible loan options with a speedy turnaround, so you’re not kept waiting.
Contact Pointer Finance now for a no-obligation chat. We’d love to talk you through your available options!