Finance Approval Process
This overview of the process for purchasing a property is simplified to help make it an enjoyable experience. We have highlighted specific points so you will know what is happening with your finance each step of the way.
- The finance application and necessary supporting documentation has been signed at our initial interview to allow us to process your transaction.
- Your solicitor will have been advised to forward a copy of your contract detailing the property purchased to our office. This usually is within 48 hours after you have signed the contract. Should you be refinancing only, no solicitor shall be required to be engaged.
- We now assess your application carefully and submit to a lender who will provide the best possible loan facility for your particular requirements as discussed. The lender is assessed on not just the interest rate, but terms and conditions of the loan are vital to the ongoing success of your particular strategy. The lenders security and serviceability requirements are also assessed carefully prior to placing your loan with any lender.
- The lender will assess your application and will provide us with an ‘in principal’ approval. At this point we will phone you and advise you of the progress of your loan. Should the lender require any additional information we will advise you at this point.
- The chosen lender will order valuations on any property that forms part of the security required. When the bank instructs for valuations a local valuer will phone to arrange a suitable time to value your own home. (Provided you are using your home as part of the required security.)
- Once the bank has received the valuations the loan will be approved unconditionally and your mortgage documents will be prepared. (Your documents may be forwarded to us for checking or to your solicitor.) Once the documents are checked they will be forwarded to you for signing and return.
The amount of documentation seems extensive but is required by law under the National Consumer Credit Protection Act (NCCP). Most of the information is duplicated for the bank and each borrower. Keep the copies marked ‘borrower’s copy’ and sign and return the ‘bank copy’ in the envelope provided. All fees and charges documented on the paperwork have been included in the borrowing costs and will be deducted at settlement. Any surplus funds will be either by cheque from your solicitor or credited direct into your Line of Credit.
The documents are required to be signed promptly and returned to your solicitor. The mortgage documents themselves will require witnessing by a Justice of the Peace, Commissioner for Declarations or Solicitor.
Return the documents as soon as possible to your solicitor, remembering to keep out your personal copies.
Your solicitor will arrange with the financial institution when settlement can be effected. Within 7 days you will receive a statement from your solicitor as well as bank statements and pin numbers for your new accounts.
For further information or a consultation please do not hesitate to Contact FAAR
