Heritage Finance Holdings Corporation is currently reviewing its position in relation to the RBA’s decision on 6 September to increase the Official Cash Rate. We'll make an announcement here as soon as we finalise our decision.
The home loan application process in 4 steps
The home loan application process can seem confusing and stressful, particularly if you’re waiting on approval to make a home purchase unconditional.
To help take some of the unknown out of your home loan application, we've put together 4 steps that your application will go through in a simple graphic. We've also explained the home loan application process in more detail below.
The home loan application process explained
Step 1: Ready for a home loan?
The initial meeting
It's a great idea to start with a meeting over the phone or face-to-face with a lending specialist. We'll be able to chat to you about what you are looking for, the types of products available, the fees and interest rates associated with each and what it will mean to have a mortgage for you financially. Most importantly we will then be able to offer you a product based on your needs.
This is also a good time to discuss the amount of money you want to borrow and how much you have for a deposit, as this will impact your LVR (loan to value ratio) and could determine available interest rates and extra charges, such as LMI (lenders mortgage insurance).
Make sure you take the time to ask your lending specialist to explain anything along the way - as no question is silly - especially when lots of lending jargon could be involved.
Remember pre-approval
Remember, we offer a pre-approval service so you can shop for a property with more confidence. To organise a home loan pre-approval enquire online, call 13 14 22 or drop into your nearest branch and chat with one of our lending specialists.
Step 2: Submission of Home Loan Application
Fill out the application
Once you’ve decided on the right product based on your needs you then have the option of applying for the home loan. Your application will be filled out and loaded onto our system. At this time forms will need to be signed, and a valuation of the property will be ordered if needed.
Loan application submitted
Once we have all the necessary details for the loan application, it will be submitted into our system for assessment. Download our handy Applying for a Home Loan help guide to make sure you’ve got what you need.
Step 3: Loan approval and signing the contract
Your loan is assessed
When our credit department is assessing a loan, we look at your ability to repay the loan including interest, your credit history and a number of other lending criteria. For more information about what lenders look for when assessing a loan, check out How much can I borrow.
If the loan has been approved
Once all your supporting documentation has been submitted, loan approval usually takes 1-2 weeks. Your lender can keep you updated along the way.
You will be notified promptly and informed of any conditions, for example, subject to a satisfactory valuation of your property. If the application is a re-finance then you will need to complete and return a discharge form.
Loan documents prepared
Once your loan has been approved the loan documents will then be prepared by our credit team. Then, once the documents are prepared, you will be contacted to collect them from the branch. If you live Interstate your documents will be posted to you.
The original documents will need to be signed by all borrowers and/or guarantors and some of the documents will also need to be witnessed by a qualified witness, such as a Justice of the Peace. There may be a deadline for the return of documents. Check with your lender to see if any will apply. If you live interstate the documents will need to be sent back directly to our credit department.
Documents checked by the credit department
Once the documents have been received by our Credit Department, they check to ensure all documents have been correctly signed, witnessed and returned. They will also liaise with your Solicitor/Conveyancer to obtain any other documents required for settlement (eg. copy of Transfers, cheque directions).
Step 4: Settlement and your new key
Settlement
If you are purchasing a property we work on the specific settlement date as outlined in your contract of sale. If your loan application is for re-financing then the settlement date will depend on the timeframe stipulated by your previous bank. There may be a minimum notification period for them to have the documents ready to settle on their end which could affect the settlement date.
Important! Make sure you have the necessary funds cleared in your account for the day of settlement. A loan specialist can help you with this if you are unsure.