How to Speed Up Your Home Loan Approval
Asking how long it takes to get a loan approved is like asking how long a piece of string is. Every application is unique, so the time between your first contact with your bank or broker and approval can never be predetermined exactly. There are, however, some things you can do to help hurry your application along.
Although very rare, same-day loan approvals are possible depending on the lender’s criteria and the complexity of the deal. Typically this has been possible when the client’s lending position is fairly straightforward in terms of employment, asset and liability position, and if a valuation wasn’t required due to a low LVR.
If you’re not prepared, it could take up to a month. The most common reason for a delay is a lender’s turnaround time to assessment, especially when some lenders have competitive offerings and experience larger application volumes, but a lack of preparation can cause this delay to snowball. Brokers can help you take all the necessary steps to ensure fast home loan approval, but there are simple ways you can help hurry the process along before your first meeting with your broker.
Disclose all information
To avoid back and forth requests, which can delay your application, ensure your lender has a thorough understanding of you as an applicant. Provide all the supporting and necessary documents upfront to your broker, and convey as much detail as possible in relation to your requirements and objectives and have good, current information on your financial position. Your broker will need to not only have your full financial details but will also need to take reasonable steps to verify it. This information can include:
(a) an asset & liability statement
(b) a detailed outline of your living costs
(c) financial statements and tax returns if you are self-employed
(d) recent payslips
(e) evidence of any rental property incomes
(f) 3-6mths bank statements for your:
– savings accounts
– credit cards
– business accounts (if you are self-employed)
(g) ATO Tax Portals (if you are self-employed)
(h) original identification documents for each borrower
Skip the valuation queue
Not all applications require a valuation, depending on the property and lending institution, and forgoing this step can save a considerable amount of time. You can also save time by having a valuation completed prior to your application, as long as it’s accepted by your chosen lender – but check with your broker first.
Still unsure? To ensure your application avoids any unnecessary delays, speak to an MFAA accredited finance broker such as Accountplan’s own Mick Doyle on 07 3883 8999.