When you’re applying for a home loan, probably the most important thing to do, is get the process underway before you go shopping for property. The reason for this is two-fold: Firstly, it means you’ll have a really good idea of what you can afford to spend, and secondly, you might be able to get what’s called ‘pre-approval’, which will put you ahead of other buyers who might be competing for the same property.
You’ll need some personal identification, proof of the deposit you have saved, proof of income (payslips and tax returns) as well as an outline of your financial commitments (student loans, car finance, and other outgoings) as well as a simple household budget, which needs to include what you regularly spend on rent, food, insurance, transport, entertainment etc. Having all of this together will save you time, and hassle.
At Oxygen Home loans, we can help you figure out how much you can borrow, and also help you find the right loan. Whether it’s with your current bank or a different lender, we will assess what you need and work out the most appropriate loan for your circumstances.
A broker service is free, and it’s worth it. It can save you hours of doing your own comparisons on lending rates and mortgage types. Plus, a broker can simplify the jargon and tell you in ‘real’ language what all the terms and conditions mean. We can also help with all the paperwork. Because we’re constantly working with lenders we know what documents they need … and we’ll make sure your approval process goes as smoothly as possible.
Every personal circumstance is different so it’s not always easy to tell how long an application will take to process. It can also depend on your credit rating and financial history, and whether or not additional information is required – this is sometimes the case if you are self-employed or taking out a joint mortgage with someone else. But most of the time, a broker will ensure all the paperwork is in order before it’s submitted, and we’ll keep following up with the lender. We’ll also keep you informed of how your application is progressing, every step of the way.
Congratulations! When your loan is approved, you can commit to purchasing a property, but there are still some further steps until the process is complete. Because the lender will effectively ‘own’ this home with you (until the mortgage is paid back in full) the lender will want to ensure inspection reports are completed, that the land title is clear of any anomalies, and they will also want to do their own property valuation. These are all normal steps in the process. We can help you arrange this.
When the home purchase is finalised, you’ll receive a schedule of payments outlining how much is due and when it is due. Most lenders have a very easy online set up that means you can organise an automatic transfer of funds, irrespective of how you choose to pay the loan. It’s important that you keep a copy of all your mortgage documents somewhere safe, and to keep a record of your payments, especially for tax time, in case there are any special tax concessions you can claim.
Life is unpredictable. So, if your personal circumstances change, you decide to renovate, or if interest rates move substantially you might find yourself considering refinancing. At this point, it’s also really wise to talk to a broker because there are many considerations, and we can help you work through the options.