Loan Application Process

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Loan Application Process

Here's a step by step guide, so you know what to expect throughout the
loan application process, from your initial consultation right through to settlement.

Your initial consultation can be conducted either over the phone or in person, at a time that suits you. During this time we’ll discuss your financial position, requirements and objectives.

Once you’re ready to proceed, we’ll request some documents from you so that we can assess your finance options.

Handy Tip: Giving all your documents to us in the one go makes the process a lot faster and allows us to provide a quick and accurate assessment of your loan options.

After we’ve received all of your required documentation, we’ll complete a Preliminary Assessment. The assessment involves:

  • Assessing your financial situation and borrowing capacity,
  • Comparing which lenders have the loan products and features you need,
  • Recommending a lender and loan product that’s right for you, with the lowest costs and the best possible interest rate available.

If you’re happy with the lender we recommend, we’ll prepare the loan application forms for you to sign. We’ll also highlight the strengths of your application to the lender, giving your finance proposal the best possible chance of success.

Conditional Approval: Once the recommended lender assesses your application and confirms that you meet their criteria, they’ll issue an approval subject to certain conditions.

Pre-Approval: If you haven’t found a property yet, the lender will provide a pre-approval for your finance application. A pre-approval is valid for 90 days with most lenders and can be extended if needed by providing up to date documentation.

Please be aware that a conditional approval/pre-approval is not a full approval, which means that you will still need to meet the lender’s guidelines in order to receive a full approval.

Purchase: Once you’ve found a property, we’ll arrange a valuation. Before the lender offers you a formal approval, they’ll engage an independent professional to provide a valuation to determine the market value of the property.

Refinance: Once the lender conditionally approves your loan they will order a valuation for your property (if we have not already arranged one for you).

Construction: Once you’re ready to construct, and you have your fixed-price building contract plus your plans and specifications finalised, we’ll arrange an on-completion valuation.

Please note: Before the lender offers you a formal approval, they’ll engage an independent professional to provide a valuation to determine the market value of the property.

Once the valuation is returned and accepted, the lender will confirm they are willing to lend you the money by issuing you a formal approval letter.

Once your loan has been formally approved, the lender will issue a loan contract for you to sign. The contract covers the terms of the loan agreement, such as ongoing fees, interest rate, and repayment terms. Before you sign anything, we’ll check all the details are correct. Then once you have signed the contract, we’ll return it to the lender, so they can settle your loan.

Once the lender has confirmed that your loan documents are all in order, they’ll contact your acting solicitor or conveyancer to let them know that the funds are available.

Purchase: If you are purchasing a property your solicitor or conveyancer will then book in a settlement date with the lender to advance the loan funds. Then we’ll notify you once settlement occurs.

Refinance: Once the lender has confirmed that your loan documents are all in order, they will contact the outgoing lender to arrange a settlement booking. Both lender’s will book in a settlement date and arrange the discharge of your loan. We will notify you once settlement occurs.

Construction: Once the lender has verified that your loan documents are all in order, they’ll confirm funding is ready and construction can commence.

Your construction loan will progressively drawn-down as your construction progresses. Usually payments are made by the lender at the following stages, which should be detailed in your Fixed-Price Building Contract or Funding Schedule:

  1. Deposit
  2. Base/slab down
  3. Frame
  4. Lock-up
  5. Fit-out
  6. Practical completion

Most lenders will require a valuer to inspect certain stages of your construction, to ensure everything is on track.

We provide an on-going support network at My Property & FInance. We’ll keep in contact with you regularly via monthly newsletters and mid-year finance reviews to ensure your loan is still competitive.

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