The 5 Stages of Home Loan Finance
So you have submitted your loan application but don’t know what to expect. Navigating the finance process can be confusing. Here are the steps to help you understand what to expect once your application is submitted
- Pre-approval or conditional approval: The lender approves your loan, subject to certain conditions. When you have a property in your sights, we move to meeting those conditions.
- Valuation: The lender may ask for an appraisal on the property you want, to gauge its market value against what you are borrowing (known as the Loan to Value Ratio, or LVR).
- Unconditional approval: This is a major step - all the conditions have been met and your loan is granted.
- Documentation: A mortgage contract, outlining the financial agreement between you and the lender, is drawn up and signed.
- Settlement of the loan and property: Time to pop the corks! Loan funds are drawn down and transferred to the seller.