The Home Loan Process for First Home Buyers

Step 1

The first step for First Home Buyers (once you have saved an initial deposit & have decided your ready to buy your first home) is to have an interview with a Mortgage Broker

I recommend you try Choice Home Loans or many of the other Mortgage Brokers available in Australia.

The Interview

During the interview(s) with a Mortgage Broker you will discuss with your Mortgage Broker your current financial situation including:

• How much of a deposit you have save?
• How much you are looking at borrowing?
• & Additional initial information to asset your current financial situation.

This information is then used to help you to select the most appropriate Home Loan Product and Lender that best suits your needs.

Once the most appropriate lender and Home Loan product has been selected, the Home Loan application process begins.

Time for this Step of the Process: 24 Hours

Step 2

Once you have worked through the range of Home Loans available and determine with your Mortgage Broker what the most suitable Home Loan is for you, you now need to go through the Home Loan Application Process

Loan Application Process

Once you have completed the Home Loan Application, Your Loan Application will be lodged with the lender within 24 hours of receipt of ALL required supporting documents when going through a Mortgage Broker.
Please note: this may vary depending on your Mortgage Broker

This includes the First Home Owners Grant (FHOG) application where applicable. Check with your Mortgage Broker for further details.
Please note: on some occasions the lender can not lodge the First Home Owners Grant (FHOG) application on your behalf.

Once lodged, your Mortgage Brokers will receive a confirmation receipt from the lender within 24 hours.

Time for this Step of the Process: 24 to 72 Hours

Step 3

After successfully completing your Home Loan Application & your Mortgage Broker has sent it off, your Mortgage Broker should then receive a Home Loan Conditional Approval

Home Loan Conditional Approval

This will detail any outstanding matters requiring attention prior to unconditional (full) approval.

Upon conditional approval, property valuation will be ordered by the lender (if required).

Time for this Step of the Process: 48 – 72 Hours – (2-3 Business Days)

Step 4

After successfully receiving your Conditional Approval of your Home Loan, your Mortgage Brokers will inform you that the lenders will generally order a property valuation(s).

Valuation Reports

Valuation report(s) will be received by the lender within 3 days of request (subject to property access).

Time for this Step of the Process: 72 Hours (3 Business Days)

Step 5

Once you Lender has completed the Valuation Reports they will provide your Mortgage Broker with another update as to how the Home Loan Application process is going

Unconditional (full) Approval

Your Mortgage Brokers will receive unconditional (full) approval from the lender within 2 days from receipt of their satisfactory valuation(s).

Your Mortgage Broker will then contact you to confirm written unconditional (full) approval has been received from the lender.

Time for this Step of the Process: 48 Hours (2 Business Days)

Step 6

Following on getting an confirmation of your Unconditional Approval of your Home Loan from your lender provided to you by your Mortgage Brokers we dive into the types of Mortgage Documents you will encounter in the next stages of the process.

Mortgage Documents

Under normal circumstances, the lender will send a copy of the mortgage documents to you (or the nominated party) within 5 days of unconditional (full) approval.

You will need to sign the mortgage documents and return them to the lender within 5 days.

Please note – on receipt of the mortgage documents, you are required to phone us to confirm your receipt and ensure all is in order for you to sign.

Time for this Step of the Process: 5 – 10 Days

Step 7

Loan Settlement

Now that you have received you Mortgage Documents and have had them signed off by your Mortgage Brokers to ensure that they are all in order its time to get into the more interesting part of the Process – Purchasing your first Property Or if your an experienced buyer Refinancing your existing Home Loans.

Purchasing a property

Between 2-3 days after you have returned your mortgage documents your solicitor/Conveyancer will contact the lender to book settlement.

Please note: Solicitors/Conveyancers need to allow 3-5 days prior to settlement to arrange the necessary paperwork.

Refinancing

Between 2-3 days after you have returned your mortgage documents the lender will liaise directly with your existing lender (if different) to arrange your property refinance.

Please note: Your existing lender may require up to 10 working days to prepare a discharge of their existing mortgage and arrange settlement.

Time for this Step of the Process: 2 – 10 Days

Step 8

Congratulations, Your a First Home Buyer!