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The home loan approval process

Most of the borrowers are often keen to know what will happen next and also how long does it take to have an outcome. There is no one-size-fits-all answer. If an application is solid and strong, the approval turnaround time is generally quicker.

The amount of time for you to receive a response for your home loan application can be different between two days up to two weeks. It depends on a range of factors, such as whether you have provided enough supportive documents with your application. It will take much longer time if the assessor request to provide supportive documents because it didn’t attach to an application while applying.

Before lender offering conditional approval, the lender will need to make an assessment of your application and conduct a valuation of the where there is a purchase involved. If the valuation can be done in advance, it could speed up the loan application process.

There a few things that can result in an application not being approved based on valuation. For example, like zoning, property size or the condition of the property is worst, and they can’t realise its market value.

The lender will need to assess your capacity to repay the loan amount you have requested. This is where all of the information about your salary and your liabilities to take into consideration. The accurate and complete information can help to shorten the time of getting approval.

During credit review by the lender, it usually includes some bit of to and fro between the customer, broker and the lender. Due to some further information request by the lender assessor as the credit review takes place.

Your potential lender will make an overall judgment of you as a borrower. The complexity of your financial history will affect how long the application process is going to takes.

The biggest mistakes for some borrowers are they didn’t disclose all of their liabilities or any adverse information on credit history. In instances where the lender identifies non-disclosure, they will issue a decline and refuse to consider the application without a very good reason being provided. So it’s important to ensure you provide your broker will all of your supporting documentation.

Due to the complexity of the application process, that is a great reason why you would sit down with us, and we will explain all of that to you.

Once the application has been submitted, you can expect us to in touch with you to update you on the progress and to notify you of the outcome. If your application is approved, we will also inform you when to expect a formal letter of approval from your lender.

Speak to Kevin on 0415820016 about how he can simplify the home loan application and approval process for you.

Disclaimer: We recommend that you seek independent financial and taxation advice before acting on any information in this newsletter. It contains general information only and has been prepared without considering your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply.

© Ace Broker. Credit Representative Number 498754 is authorised under Australian Credit Licence Number 389328.

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