In this heavily-processed world we inhabit, just what exactly is involved in the home loan process? From the initial research, to securing the loan and all the steps between, let’s take a look at what’s in store for anyone readying themselves to apply for a home loan.
While there can be contention about which step comes first in this chicken-or-egg scenario, most people generally go with:
If you have savings, a steady job, and/or a desire to buy, then you’ll no doubt switch up the time you spend mindlessly scrolling on social media to time spent obsessively scrolling real estate apps. Your weekends will be filled with visits to open homes and your weekdays spent chasing up sales agents (while you pretend to be busy working at that job that enables to buy the house in the first place!).
Even if you aren’t quite ready to put in an offer, this step can be seen as key research and is the quintessential springboard to home ownership.
While pre-approval isn’t absolutely essential, applying for it will ease your mind and settle a whole heap of ‘ifs’ and ‘buts’ and clear the path for you to readily put an offer in on a property or bid at an auction.
Pre-approval gives you:
With a pre-approval letter under your belt, you can choose to work with a real estate agent to look at homes within your price range, or, go it alone with your trusty apps. The pre-approval letter also helps show sellers and agents alike that you’re a serious buyer.
Once you find a property you like and believe you can afford, it’s time for you to make an offer or bid at the auction. If the offer is accepted or you win the auction (hooray!), you’ll sign a contract of sale. This document is legally-binding within the stated terms of sale.
Once you’ve found a property, you’ll notify your lender of choice and proceed to securing unconditional approval. During this time, the lender will complete a valuation of the property and you’ll need to provide documentation to satisfy the conditions that were listed on your pre-approval.
Once this has been done, they’ll issue you unconditional approval and then send you the loan documentation for signing.
The final stage of the property purchase process is settlement. Here, all parties will exchange all necessary funds and property titles. Once complete, you’ll get the keys and your home will be officially processed as yours!
Remember that while all of these machinations are in play during the home loan process, it’s important that you maintain an open and clear communication with your lender, real estate agent, conveyancer, and/or any other professionals involved. This will help keep things on track for you, both mentally and practically, and keep you up to date with exactly where you’re at throughout the home loan process.
