With everything involved in buying a home and organising the money, it’s normal to feel completely overwhelmed when applying for a home loan. To help you get to grips with the application process, we’ve created an easy-to-understand process that illustrates the basic steps involved in borrowing the finance you need.
Getting to know you.
The purpose of our first meeting is to understand your financial profile, plans and preferences so that we can help you to choose the best loan for you. We would walk through the typical cost of purchasing a property and the repayments both now and into the future when rates ultimately do increase. We would discuss affordability in terms of your budget and also build in some risk reduction strategies to help you along the way.
More importantly it’s also an opportunity for you to get to know us and learn how we do things.
Our team carry out in-depth research into the most effective finance solution for your situation. This involves ascertaining your borrowing capacity, determining appropriate home loan options and comparing suitable lenders. Here at Vault Plus Mortgage’s we’ll pull these findings together for you in a Statement of Advice document.
The recommendation presentation
We will present our recommendations of lender and loan that best suit your requirements. This information will include loan structures, product rates, terms and features. After you’ve made the decision on the lender and home loan, we will prepare and complete the chosen lender’s application form for signing.
We will submit your loan application to the lender within 24 hours of receiving all required documents and signatures. This includes the First Home Owners Grant (FHOG) application where applicable or any Stamp Duty Exemption forms.
Not long after the lodgement of the application we will receive conditional approval from the lender which will highlight some ‘conditions’ that need to be met prior to a Formal Approval. Typically the most common outstanding ‘condition’ will be a valuation on the security property and a Contract of Sale to be provided which is covered below.
Valuation of property
The valuation is usually the final condition that needs to be met before unconditional or Formal Approval is issued. We are across the specific lenders valuation policies and we will organise and manage the valuation process on behalf of the lender and you.
Once received, the valuation report is submitted to the lender for the final assessment of the application.
Unconditional (Formal) approval
Subject to all being in order the lender will issue unconditional (Formal) approval shortly after the lodgement of the valuation report. We will provide you with a written copy of the Formal Loan Approval which is our ultimate aim in the Application process. We will also provide a copy to your solicitor or conveyancer as this is usually the final piece of information they require to Exchange Contracts on.
The issuance of the Formal Approval will usually trigger instructions to the lenders solicitors to prepare the Mortgage Documents and Loan Contracts. Depending on the lender and the intricacies of the deal these Contracts might come in an electronic form requiring an electronic signature or they might come in a paper format. Either way we aim to be present when you execute these Contracts and help you through the process.
As we approach settlement we are in constant contact with you, the lender and your Solicitor / Conveyancer to ensure everything is in order. Once settlement is confirmed its handshakes all round and that fantastic feeling and immense pride that comes with achieving this massive life time goal.
Post settlement the lender and their solicitor will provide you with a detailed breakdown of the settlement monies so you know where every last cent has gone.
Clients For Life
Let the celebrations begin because you’ve finally got a mortgage! As a client for life, we are always here for you. Whether it be to make sure your home loan remains competitive, looking to renovate or invest or to simply get some tips around saving money on your finances, we are here to help.