Buying a home is a big thing. There are so many options to consider, but when it comes to your mortgage, we can do all the hard work for you. Check out the nine steps below to see just how easy it is to use a Mortgage Broker (like the fabulously friendly team at ACE Lending) to get your mortgage.
1. Information is Power
Our first step usually includes gathering as much information about you as possible via our Fact Find (also known as a Client Needs Analysis). This can also be completed face to face or over the phone. The information you provide us at this first step provides the foundation for your loan, including which lenders and products will be best for you. We’ve made our Fact Find short but as detailed as possible. We don’t ask for any information we don’t need, so providing the required information in this early stage will help smooth the way for the rest of your application.
Don’t worry if you have bad credit, or something you think could affect your chances of getting a mortgage – let us know up front so we know what we’re working with.
2. The inevitable paperwork…
After your broker has reviewed your details, we’ll send you a Credit Proposal Disclosure, Quote and a Preliminary Assessment. These documents are important and form part of the National Consumer Credit Protection (NCCP) Act. Make sure you read through these documents carefully before signing and returning (note, you only need to sign and return the Quote and Preliminary Assessment – the Credit Proposal Disclosure is for your records only). The Preliminary Assessment includes the options your broker has considered for your home loan, which they will have discussed with you prior to receiving this.
Upon receiving your signed forms, your broker will prepare your loan documents which will also be sent to you to check, sign and return.
3. …And the supporting paperwork
Once your loan documents have been received and sent to the lender, your broker will likely ask you to provide further information, including recent payslips and certified ID. Each lender has different requirements for these supporting documents, so we don’t ask for them up front. If you can provide this information in a clear PDF format, this is preferred. However, if you’re meeting with your broker face to face, they can take these copies of these documents for you.
4. What’s it worth?
If you have a current property to use as equity, the lender will need to do a valuation on that property to assess its worth. This equity will then be used against the property you are purchasing. Your broker may order a valuation at any point in the process. If access is needed to your property, the Valuer will contact you to organise a suitable inspection time. Some valuations incur a fee, which your broker will advise you of prior to booking the valuation.
Lenders Mortgage Insurance (LMI)
LMI may be applicable to your mortgage if you have less than 20% deposit or not enough equity in your existing property. Your broker will explain this further if it applies to you.
5. It’s Conditional!
Once your application and the supporting documents have been received by the lender, and reviewed by their credit team, they will let your broker know if your loan has gone conditional, which means that your loan is approved subject to certain conditions being met. These conditions vary from lender to lender and will be different for each loan. Your broker will let you know exactly what else the lender needs.
6. Black Tie?
Once all the conditions on your loan are met, the lender will advise us that your loan has gone unconditional and your broker will notify you that you have now received a formal approval. The lender will then proceed to prepare your official mortgage documents. Congratulations are now in order!
7. Get your lucky pen poised
Your lender will send you the official mortgage documents once they have been prepared. These will need to be signed, witnessed and returned to your broker or lender. Your broker will advise you of where the documents need to sent as it can vary between lenders.
8. So it’s settled then?
The lender will organise settlement directly with your conveyancer. Your conveyancer will be able to answer any questions you have about this process if they have not already communicated this with you.
9. What happens now?
Now the fun begins! You’ve got the keys; your car is filled with boxes of your belongings; and friends and family are lined up and ready to make your new house a home. Your first mortgage repayment will come into effect within the first month after settlement – confirm with your lender so you know what to expect.
To ensure you & your new home are adequately protected, it is highly recommended that you speak to a professional about home, contents, life and income insurance. Chat to your broker for further information.
In the midst of your excitement as you prepare to move in to your new home, please remember to advise the necessary organisations that you have moved. Check out our ten tips for moving house.