The Home Loan Process

Buying a property is a big decision. Understanding how the finance works can help you approach it with greater confidence.

My role is to help you understand your options, make informed decisions and know what happens next. You’ll work directly with me, from our first conversation through to settlement and beyond.

Whether you’re local or interstate, we can work together over Zoom.

1. Start with a conversation

Before we look at lenders or loan products, we’ll talk about you.

What are you planning? What matters to you? Are you buying your first home, moving to your next home or purchasing an investment property?

We’ll discuss your circumstances, goals and timing. You don’t need to arrive with everything worked out. Our first conversation helps identify where you are now and what your next steps could be.

2. Understand your financial position and loan options

We’ll look at your income, living expenses, savings, existing debts and other commitments. I’ll explain which documents are needed to build a clear picture of your circumstances.

We’ll consider both the lender’s assessment and repayments that fit your household budget. For a purchase, we’ll also allow for costs such as legal fees, inspections and applicable government charges.

From there, I’ll research suitable options from the lenders I work with. We’ll discuss interest rates, fees, repayments and features, including any relevant benefits and limitations.

I’ll explain the reasons behind my recommendations and answer your questions so you can make an informed choice. MoneySmart’s guide to working with a broker outlines this process.

3. Consider pre-approval before you buy

If you’re still looking for a property, we’ll discuss whether applying for pre-approval would be useful.

Pre-approval can help establish a potential borrowing range and guide your property search. However, it is conditional and does not guarantee final loan approval. The lender still needs to assess the property and confirm that its requirements are met. More about conditional approval.

I’ll explain the conditions attached to your pre-approval and anything that needs to be checked as your plans progress.

Before signing a purchase contract or bidding at auction, speak with me about your finance position and obtain advice from your solicitor or conveyancer about the contract and your obligations.

4. Prepare and manage your application

Once you’ve chosen a suitable loan and are ready to proceed, I’ll prepare and submit your application.

The documents required depend on your circumstances and the lender. They may include identification, evidence of income, bank statements, details of existing commitments and the purchase contract.

I’ll let you know what is needed and help you work through the requirements. During assessment, I’ll liaise with the lender, follow up requests and keep you informed.

The lender makes the lending decision. If further information or a property valuation is required, I’ll explain what that means for your application.

5. Work towards approval and settlement

When the lender issues your loan offer, there are still documents to review and requirements to complete.

I’ll help you understand the next steps and the loan features we’ve discussed. Take time to read the documents and raise any questions before accepting them.

For a property purchase, your solicitor or conveyancer coordinates the legal aspects of settlement with the lender and the seller’s representatives. I’ll stay involved with the finance arrangements and help follow up outstanding requirements. MoneySmart explains the purchase and settlement stages.

Once settlement is complete, I’ll check in to help you get familiar with your new loan and its repayment arrangements.

6. Receive support beyond settlement

My service continues after your loan settles.

You can contact me with questions, discuss changes in your circumstances or arrange a review of your loan. As your needs change, we can revisit whether your loan continues to suit your situation.

You’ll have someone familiar with your circumstances to turn to throughout the life of your loan.

Let’s talk about your next step

You don’t need to understand the whole process before getting started.

Book a 15-minute phone call, and we’ll discuss your plans and the next step that makes sense for you.