Initial discussion to work out deposit required, borrowing capacity, loan requirements
A good starting point to work out your potential budget, learn about how much you can borrow and what your future repayments would be, discuss the different types of loans and lenders on the market and determine which lender might be suitable for your individual scenario. This is when you would discuss your employment history and current liabilities and expenses too.
Obtain a Pre-Approval
Your broker would lodge an application to the chosen lender. Once the bank is happy with your application, they?d issue out a Conditional Approval letter.
Make an offer on a property
At this stage, you?ve got the letter from the bank and you can now start shopping for properties! Once you?ve found your perfect place, you can then make an offer on a property. Ask your broker for help with the ?Finance Clause? and also the contract in general as it might be handy to get yourself familiar with this process before making a formal offer.
Seller accepts the offer
Hopefully the seller/vendor is happy with your offer and signs on the dotted line to accept your formal offer.
Send Contract of Sale to broker
If you?ve found your property within a certain time frame, then you may not have to send updated payslips or documents, the bank would simply require the Contract of Sale for your chosen property and they may order a valuation on the property.
Formal Finance Approval
Once the bank has received the valuation and are satisfied with the report, they will generally issue the Formal Finance Approval letter. This is one of the key milestone dates in the contract of sale when you make an offer on a property. You can relax a little now ? congratulations!
Loan documents signed and returned to bank
The broker can help you to sign the loan contracts that the bank sends and if they?re like me, they?ll either personally deliver the documents if possible, or express post them to speed up the process. Once the bank have received these contracts and have certified the documents, they?ll be ?ready to settle? and will advise your settlement agent.
Settlement Day
Yay! Time for the property to exchange hands and for cheques to be distributed to the various parties involved. Once it?s settled, you can collect the keys and celebrate!!