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NEXT HOME BUYERS
A hive loan advisor will find you the type of loan you want at the best rates available (see how we find you the best deal every time). If you are buying your next home before selling your current property, we can help.
The Home Buying Process
INTERVIEW
Your mortgage professional will meet with you at a place which is the most convenient to you. Your mortgage professional will discuss the home loans (with the necessary features and benefits that you require) that suit your situation. They will go through numerous options that are available to see which is the most appropriate for your needs and wants. Once you are happy with your selection of loan product, the loan process will commence.
COMPLETION OF LOAN APPLICATION
Your mortgage professional will now complete the lenders application that you have chosen and do what is required in relation to all the necessary documentation which is to be included so they can lodge your home loan application. They will also go through your income situation to see if you will be able to service the loan you are applying for. Upon receiving all the relevant documentation the mortgage professional will submit it to the chosen lender.
LENDER ASSESSING APPLICATION
The lender will assess your application to determine whether you meet their serviceability and credit requirements. This process includes confirmation of your income, employment, assessment of your supporting documentation and a credit reference check.
CONDITIONAL APPROVAL
The mortgage professional will receive a communication from the lender in the form of a conditional approval on your behalf. The lender will also outline any matters that need to be addressed before they can issue an unconditional approval.
VALUATION OF SECURITY BEING PROVIDED
The most common condition of an approval is valuation of the security being provided. The lender will order the valuation and this could take up to 3 -4 days to complete – it will all depend on if the valuer can obtain access to the security property being provided.
LENDERS MORTGAGE INSURANCE
This step will only be necessary if you have less than a 20% deposit or insufficient equity in an existing property.
FORMAL APPROVAL
When a home loan application is formally approved (unconditionally approved) it means that all conditions and criteria required to assess a loan application have been supplied, assessed and approved. It is only when a home loan application is formally approved that the borrower can feel comfortable that they can obtain a home loan. If you are buying a property it is advisable not to exchange contracts until such time that your loan has been formally approved. A formal Letter of Offer will then be issued by the lender. Mortgage documents will be prepared and will be sent directly to the applicant/s or the applicants solicitor if that was requested in the loan application.
MORTGAGE DOCUMENTATION
Now that the formal offer has been provided, mortgage documentation is prepared by the lender. This include the letter of offer, transfer document; terms and conditions of the loan you have chosen and any other documentation that is pertinent to the lenders own guidelines. If a purchase is involved then it is highly recommended that you sit down with your solicitor/ conveyancer to go through the paperwork and it will be the solicitor/conveyancer who will then liaise with the lender to schedule a settlement date. If it is for a refinance or a “top up” then it is recommended you sit down and go through these documents with your mortgage professional.
INSURANCE REQUIREMENTS
With the new liabilities that come with owning property, it is important to consider or review your insurance requirements to ensure you are appropriately covered. There are four main types of insurance you should consider:
- Home Insurance
- Contents Insurance
- Life Insurance
- Income Protection
You may need to start your insurance cover prior to settlement.
SETTLEMENT
After the mortgage documents are signed, witnessed and sent back to the lender, settlement is arranged via your solicitor/conveyancer or if there is not a necessity for a solicitor/conveyancer then the mortgage professional will be involved to ensure settlement is completed. The first repayment on your loan will usually be required one month after the settlement date.
Get In Touch
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Contact Information
Feel free to give us a buzz and discuss your situation and needs further or submit your details on the left.
Phone 0410 321 222
Email peter@hivefinance.com.au
Address Suite 2, Level 1, 354 Bay Street, Brighton-Le-Sands NSW 2216