In this article we asked TRACY KEAREY, Director of Mortgage Advice Bureau, Brisbane to explain what to expect when it comes to loan approval turnaround times and if there is anything an applicant can do to help speed up the process.
Asking how long it takes to get a home loan approved is like asking how long a piece of string is. And with property market in Australia currently running red hot, home loan applications being lodged with lenders are mounting up.
Therefore, it’s even more important to make sure that as an applicant you play your part and have everything prepared before making application for your loan.
In saying this, each home loan application is unique, so the time between your first contact with your mortgage broker and approval can never be predetermined.
How long should it take?
Although its very rare, same-day loan approvals are possible, but it depends on the lender’s criteria, the complexity of the deal and the turnaround time.
“In my experience, this has only ever been possible when a client’s lending position is fairly straightforward in terms of employment along with their asset and liability position AND a valuation wasn’t required due to a low LVR and both parties were happy with the contract price.” says mortgage and finance broker, Tracy Kearey.
In reality, even if you are fully prepared a loan approval can take anywhere from 14 days to a month or even longer.
Why does it take so long?
The most common reason for a delay is a lender’s turnaround time to assessment, especially when some lenders have competitive offerings and they experience a larger than expected volume of applications.
But a lack of preparation can also cause this delay to snowball.
“When there are such delays and then on to of this the lender needs to organise a valuation or request further information from the applicant, this can lead to a more lengthy process time,” Tracy says.
An experienced mortgage and finance broker should be across all of the potential hurdles. After all, it’s their job to ensure your home loan is approved as quickly as possible so you can move forward with your purchase.
However, there are simple ways you can help the process before meeting with your mortgage and finance broker.
Provide all information
These will help you to avoid back and forth requests from your broker, which can delay your application.
- Ensure your lender has a thorough understanding of you as an applicant by declaring everything to your broker.
- Have appropriate identification for all borrowers available.
- Provide your broker with all of the necessary documents they require.
- Discuss with your broker as much detail as possible in relation to your requirements and objectives.
- Have accurate information and records available to fully outline your current financial position.
Why the inquisition? Well your mortgage broker is pitching you to a lender, so they need to have access to your full financial details and they also need to take reasonable steps to verify them before submitting your application.
Full declaration is the name of the game when it comes to having a loan approved. And the truth is, no mortgage broker or lender takes kindly to finding financial information or discrepancy they were not informed of.
Skip the valuation queue
Not all applications require a valuation. It depends on the property, its location and the lending institutions policies. Forgoing this step can save a considerable amount of time.
You can also save time by having a valuation completed prior to your application, as long as it’s accepted by your chosen lender. But check with your mortgage broker first before moving forward.
If you need expert assistance with applying for your loan or need further information on the loan options available to you please give me a call on 0417 738 469.
Tracy Kearey is an award winning Finance and Mortgage Broker with 22 years experience. She has access to over 40+ lenders and offers her clients access to extensive range of loan products and services tailored to individual borrowing needs. If you need assistance with your lending needs you can send Tracy an email or give her a call on M: 0417 738 469.