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:
- What type of loan are you eligible for?
- Which lender offers the best loans for your unique circumstances?
- How much have you saved and how much would you like to borrow?
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:
- First, you’ll meet for an initial consultation, discuss your needs, and determine whether or not you’d like to work together.
- Then, your broker will ask for your documentation, including things like your ID and payslips.
- Next, you will be assessed. Potential issues will be addressed, and your borrowing capacity will be calculated. From this, the broker will recommend several products.
- Finally, you select a product to submit an application for.
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.