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.
There are, however, some things you can do to help hurry your application along.
1. Disclose all information
No one likes paperwork; however, providing your broker with the right documentation will save you time and money.
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.
Prepare the following documentation:
- Identification, including photo ID such as driver licence
- Income verification documentation such as recent payslips
- Birth certificate, if you are applying for a government-funded first homeowner grant
You may also be asked to provide:
- A recent PAYG summary
- A notice of assessment from the Australian Taxation Office
- Tax returns
- Proof of your contribution toward the transaction, such as savings or deposit statements
- Purchase contracts for a home loan, including building contracts, or plans if building
The broker will need to not only have your full financial details but will also need to take reasonable steps to verify it. Brokers ensure that they match a client with a loan that helps them achieve their property goals, whether that is buying a home to live in, one to renovate and sell, or a long-term investment, and one that matches their financial positions.
2. 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.
A good finance broker will 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.