When you have decided that you will apply for a loan, you need to understand that it is a process.
It can take a few days to even weeks before you can get approved. You will also have to go through some vetting procedures where the lender will review your credit history and other information about yourself.
There are five stages you will go through, from starting an application to finally getting the funds you need and buying the home of your dreams.
So, let's begin looking at how the home loan process goes with Quantum Finance.
Step 1: Start an Application
Are you qualified for a home loan? Our pre-qualification process involves a few requirements to determine your eligibility. These include documents, such as your last few payslips, employment history, current debts, and your monthly expenses. But unlike banks and other lenders, you don't need to wait several days to get the answer.
- Quantum Finance's pre-qualification takes about 30 minutes guided by us
- We will then review the application you just sent. Be sure that you have given us the correct contact information.
- Our senior broker (Gavin) will contact you immediately to discuss the strength of your application
The next part is where you can identify if we're right for you. After the pre-qualification process, you will immediately know a “ballpark” amount you will likely be approved to borrow. It is then your decision from here wether you wish to proceed with a formal loan application with a recommended lender.
Our aim here at Quantum Finance is to help you find the right home loan option for you and your financial situation. We encourage you to take your time in comparing the available options until you are 100% sure we offer a good value for your specific needs.
Step 2: Get Pre-Approved
Conditional pre-approval gives you an estimate of the amount you can borrow. Upon reviewing your application, we will decide on the specific amount based on the information you have provided.
- Applying for conditional pre-approval can give you a rough idea as to how much you can afford. So, when you find the property that you wish to buy, you can make an offer confidently. It increases your negotiating power when bargaining with home sellers.
- Don't forget that pre-approval does not mean you are approved of a loan. It is still possible for your application to be rejected, especially if your circumstances have changed. For example, you have just lost your job, or you were demoted from your previous position. In these cases, you may not have the financial capacity to repay the pre-approved amount - a significant reason why applications get turned down.
- Conditional pre-approval for home loans do not last a lifetime, unfortunately. It will only be valid for about 90 days. However, you're not required to make any other interaction with us. You are free to look for another loan product from another lender if you are not happy with the offered pre-approved loan amount and monthly repayments.
- During the pre-approval period, you can look for suitable properties within the pre-approved amount.
- The properties to consider should be within the pre-approved amount. You can make an offer with the seller but ensure the sales contract states you are still "subject to finance."
Some lenders may request more documentation to determine your eligibility, which may include:
- Proof of employment and income, including tax returns, payslips, and employer contact details
- Tax returns, financial statements of your business like balance sheets, business activity statements, or profit and loss statements If self-employed
- List of assets like your car or any investment
- List of liabilities or any debt
- Your proof of identity as an Australian citizen, such as passport, birth certificate, and driver's licence
As your broker, Quantum Finance will try to make things easier for you by communicating with you constantly. Please don't hesitate to ask any questions, so your application will not be put on hold.
Step 3: Get Officially Approved
You have found the home of your dreams. Congratulations! Even better, the seller would also like to hear more about your offer. You're sure that you are on your way to a successful deal. After the pre-approval stage, it is time to prepare for the most important of all: getting officially approved.
The process is actually relatively straightforward:
- You will receive your loan documents directly from us.
- Please make sure that you review everything thoroughly before agreeing to the contract and signing. If possible, you can have a legal professional or accountant, so you are appropriately guided. You can also contact us to ask questions if there is anything you do not understand.
- You will receive a form for you to fill out about your bank account. This form is where you will specify the amount you wish to pay, along with the frequency of your repayments. Talk to us if you need any assistance.
Once you have completed the form and signed the documents, you can send them back to us. Wait for our response, and we will move on to the next phase.
Step 4: Prepare for the Settlement
You're almost there! The contract you signed stipulates the date when the loan funds will be sent to the home seller. After paying for the property, let's pat you on the back. Congratulations! You can now take possession of the home after satisfying all the requirements of the sale.
The settlement process is usually simple, but you will need to have a conveyancer or solicitor who will liaise with the seller's own solicitor (or conveyancer). We can assume this role with the settlement agent until the settlement is finalised. Building insurance should be arranged at this point. You are required to send the confirmation of the building insurance to us prior to reaching the settlement date.
After that, you will know when the property will be transferred to your name. The conclusion of the settlement process allows you to move into the property, which you can now call your new home.
Step 5: Stay Up-to-Date with Your Loan
You have just completed the exciting process of moving into your new home. But your work is not done yet. You now have a crucial obligation that you should take seriously so you do not end up losing the property. We will reach out to you during the first year of your loan to know how you're doing and to check on your financial situation, as well.
We encourage you to gather resources and read any helpful articles regarding home loans, particularly the repayment process. Check back often and communicate with us every time you feel the need to do so. Always repay the loan on time and in full each month, so you continue living stress-free in your new home.
Get started on your own home loan process with Quantum Finance today!