After the lodgement of a home loan application, hopeful borrowers are often keen to know what will happen next and how long it will take for them to receive the verdict. The bad news is that there is no one-size-fits-all answer. The good news, however, is that a solid application is the key to keeping the approval time short.
The amount of time it takes for you to receive a response to your home loan application can vary. An answer is usually received between two days to two weeks, depending on a range of factors.
“For an uncomplicated and straightforward application, it can be as quick as 48 hours to a final approval. But, depending on how complex the circumstances are, it can take longer than that,” explains Shane Nipperess from Centrepoint Finance.
Before offering conditional approval, the potential lender will need to make an assessment of your overall application and possibly conduct a valuation of the property you wish to purchase. We can organise a valuation that is acceptable to the lender done in advance to help expedite the lending process.
“With valuations, the intention is to support your application rather than to make or break it,” Shane says. “There are a few things that can result in the valuation affecting the application approval; like zoning, location, property size, or the condition of the property (i.e. major repairs are required to realise its market value).”
The lender will also assess your capacity to repay the loan amount you have requested. This is where all of the information about your salary and liabilities come into consideration, and where accurate and complete information is essential.
“Your credit review by the lender can include a bit of to-and-fro between the broker and the lender if the lender requests further information,” Shane says.
Your potential lender makes an overall judgement of you as a borrower and the complexity of your financial history will affect how long this takes.
“It’s best to be open and honest about your circumstances and situation. The biggest red flag for a lender, is non-disclosure of liabilities or adverse information on a credit history. Lenders don’t like surprises,” Shane says.
“The complexity of the overall loan application process is the biggest reason why you should sit down with a reputable broker, like Centrepoint Finance. We can explain the entire process with regard to your individual circumstances and help make the application run as smooth as possible.”
After the submission of your application, you can expect your finance broker to be in touch with you regularly to update you on progress through every step and to notify you of the outcome. If your application is approved, your broker will also step your through the rest of the process and liaise with other professionals to ensure settlement is conducted as planned.
Thanks to Centrepint Finance