Here’s what your journey looks like after deciding to buy a home or investment property…
My services as a broker come at no cost to you, as I am compensated by the lender after settlement. For a smooth process, I’ll need timely responses to any questions or document requests. To ensure your data’s security, we recommend completing the data collection process electronically.
Step 1: Initial Call
Everyone’s situation is unique. During our initial conversation, I’ll ask you a range of questions to understand your home or investment purchase goals, financial position, and the urgency and timing of your needs.
We’ll collect your contact details (name, mobile, email) and the type of finance required (Purchase, Investment, Refinance, Self Employed, or Business). We’ll also need to know if you need pre-approval, if it’s an off-the-plan purchase, and if a deposit has been paid and settlement is pending (ie. Urgent).
Step 2: Understanding Your Needs and Position
Our goal is to gather enough information to prioritize your enquiry and meet or exceed your expectations. If I foresee any difficulties, I’ll be upfront and may refer you elsewhere. The key elements we need to assess are deposit, net income, and policy compliance.
Step 3: Finding a Loan That Suits
After our initial chat, I’ll review loan products from over 60 lenders and present you with a shortlist of options. We compare loans and lenders based on:
- Your ability to service the loan
- Speed of loan processing
- Specific policies (income, deposit, security, etc.)
- Interest rates
- Fees and cash-back offers
Step 3-1: What if We Can’t Find a Suitable Loan?
If a loan doesn’t meet lenders’ strict policies, I’ll explain why and what actions can be taken. For example, reducing credit card limits or waiting until a return-to-work letter is available for maternity leave.
Step 3-2: Achieving a Successful Loan Application
For a successful application, we need to satisfy three key parts:
Income/Expenses: We must show that your net income minus expenses can cover existing liabilities plus the new loan.
Deposit/Equity: You can’t normally borrow more than 95% of the purchase price, but some lenders allow up to 99% to include LMI. For investments, most lenders cap at 90% LVR.
Policy: Lenders have varying policies on income assessment, expenses, loan types, and security locations – which is why you work with a broker rather than a single bank.
Step 4: Getting Everything Lined Up
Once I complete the initial review, I’ll provide you with lender and loan options. You’ll need to provide supporting documents to verify your financial situation, and I’ll send you a checklist of what’s needed. We’ll review your responses, finalize your application, and prepare it for your signature
Step 5: Additional Services
You will need the service of other professionals, am I can recommend those who I have worked with for years including conveyancers, accountants, bookkeepers, buyers agents, family lawyers, personal and business insurance agents, real estate agents, and others who can assist with property transactions.
Step 6: Pre-approval from the Lender
We will submit your application to the lender, who will review it and perform a credit check. If everything meets their criteria, they will grant pre-approval.
Please note that we can provide property reports for any properties you are considering.
Once you have finalized your purchase, we will arrange a property valuation.
Step 7: Meeting Outstanding Conditions (if required)
If the lender needs additional information, we’ll address their questions and request any necessary documents. Lenders must comply with NCCP (National Consumer Credit Protection) regulations to ensure they do not provide financing that could cause financial hardship.
Step 8: Unconditional Approval
Once all conditions are met and property selected and valued, the lender will issue formal approval. You can then arrange with your conveyancer or solicitor to exchange the contract, and arrange insurance for the property.
Step 9: Loan Documents Issued
The lender will send a full set of mortgage and loan documents, online for fast processing.
Step 10: Signing and Returning Loan Documents
We’ll review the paperwork, ensure all parties sign, and return it to the lender.
Step 11: Loan Settlement
Your conveyancer or solicitor will arrange settlement with the lender. Upon settlement, property ownership will transfer to you.
(Followed by popping of corks and a huge sigh of relief!)
I’m here to make this process as smooth as possible. Feel free to reach out with any questions, and let’s get started on your loan journey!
#buyinvestlive
Kelvin Mason, JP || Residential & Commercial Finance
Purchase – Refinance – Equity – Home – Investment – SMSF – NDIS – FHO – Self Employed – Construction – Development – Renovations 🏠
