Cigno Australian Pty Ltd

3 Steps of the Mortgage Loan Process

Are you looking to find out more about the mortgage loan process? Are you wondering how to get a mortgage loan? No worries.

If you’ve never applied for a mortgage before, it can seem a little daunting. Let’s breakdown the process step-by-step, so you know exactly what to expect when it’s go-time.

Step 1: Preliminary preparation

There’s a lot that goes into preparing a home loan application. Before you even begin, you’ll need to answer questions like:

It can be difficult to know where to start, and feeling overwhelmed is normal. That’s why so many buyers choose to work with mortgage brokers. Brokers offer a free service that connects you, the buyer, with a solution that meets your specific needs.

Working with a mortgage broker

If you contact a trusted mortgage broker, they can tell you how to get a mortgage loan that suits your situation and goals. Here’s how preparing for a loan with a broker works:

You don’t have to work with a broker – you can do direct to a lender, instead. Just be sure to do your research.

Step 2: Submitting an application

Now, it’s time to submit your home loan application – this is usually done through the lender’s portal. You’ll need to include a fair amount of paperwork and supporting documents and sign a few forms.

If you choose to work with a broker, they will usually submit your application on your behalf.

Step 3: The lender responds

Your application will be denied, given pre-approval (also known as conditional approval), or formally approved.

Pre-approval means you’ve met most of the lender’s policies. The next step is finding a property and securing a property valuation. If this goes smoothly, you’ll likely be awarded a home loan.

Pre-approval generally lasts about three months, so you have a bit of time to find that perfect property.

If you have been granted formal or unconditional approval, then the lender has confirmed that they will issue you a home loan. Now, you can totally relax.

You’ve got your home loan – what’s next?

So, there you have it: the mortgage loan process. You’ve secured a home loan, and now you’re ready to settle on your new property. If it all goes to plan, the rest is history.

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.