STEP 1 – Selecting the right loan for you
There are a myriad of lenders, loan types and products on the market. Our brokers will ask you many questions about your current and future circumstances and your finance needs to determine the right lender, loan type and product for you.
All the ‘hidden costs’ and facilities of your loan product will be explained to you. This includes the application and discharge fees, that can differ wildly between lenders. Finding and buying a home can involve extra costs equivalent to 5% to 7% of the purchase price. These fees may include – application fees, stamp duty, mortgage insurance, solicitor fees and valuations.
STEP 2 – Submitting your application to the lender
When applying for any home loan, lenders require certain information and documentation.
This information will differ depending on the lender and loan product. Documents to verify your income and asset/liability position may include:
- Letters from employers
- Tax assessments
- Tax returns
- Evidence of government benefits
- Land and water rates notices
- Statements of existing home loans/personal loans/car loans
- Credit card statements
Your broker and their personal assistant will advise you of what is required.
Additionally in the case of a property purchase a sales instruction from the sales agent or contract of sale from the solicitor will be required. For investment properties a letter evidencing the expected weekly rent may be required.
Typically, your application can not be submitted to the lender until all necessary documentation is provided.
STEP 3 – The approval process
Once your application is received by the lender a number of initial checks are conducted. These include verifying you can ‘service’ the loan, a credit report and in some cases verification of your employment status by your employer. If valuations are required they will be ordered. If the loan is subject to mortgage insurance, your application along with your credit report and the valuation report will be sent to the mortgage insurer for assessment. Some lenders will run a title search prior to approval. In the ACT this can take up to 72-hours.
STEP 4 – You’re approved!
Once your application is unconditionally approved we will forward confirmation in writing to both yourself and your solicitor (in the case of a purchase).
The exchange or refinance process begins here. In the ACT it is recommended that building insurance is taken out on your new property at the time of exchange.
STEP 5 – Your loan offer contract and mortgage documents are prepared
Your lender will issue these documents to Tiffen & Co. Your Broker will make an appointment with you to take you through the documents and explain in detail the terms and conditions of the offer and the features of your loan product.
If you understand your offer and are happy with your loan offer you can sign your documents at the appointment. Alternatively you can take your loan offer contract away for further consideration.
Once signed, your documents will be checked for correctness and completion by Tiffen & Co and subsequently returned to the lender.
STEP 6 – Booking settlement
If you are purchasing it is your solicitors responsibility to book and attend settlement on your behalf. In the case of refinances Tiffen & Co will track settlement of your loan on your behalf.
STEP 7 – Settlement
Once your loan settles we will advise you and your solicitor.
STEP 8 – Post settlement care
After your loan settles we will be in contact with you to ensure you are aware when your first repayment falls due and where it will be coming from. We will take the time to ensure you are happy with your loan. Tiffen & Co will be in contact with you throughout the life of your loan to ensure it remains the best product for you.