Documents you need for a loan approval
By | 15th Jan 19

Buying property is not just about finding the right home or apartment to purchase.

Buying property is not just about finding the right home or apartment to purchase. There are some processes such as the loan application that you will need to consider. Getting all the paper work done and organised can help you in a number of ways when it comes to purchasing.

You can use the pre-approval as a negotiation tool to purchase prior to auction as well as know exactly what your budget entails prior to purchasing. Whether you choose to organise your loan prior to purchasing or in the settlement period, it’s a good idea to know what documents you will need from a financing point of view.

 

In simple terms, the application process for a loan is quite straight forward. With increasingly more regulations from banks, more information about your living expenses are now required to secure a loan.

  • Apply for a loan. Consider, compare and find the right mortgage that suits you.
  • Conditional approval. Your lender or bank will assesses your eligibility and give you a rough idea of how much they will lend you taking into consideration things like your salary, living expenses, debts or assets. A conditional approval is subject to a property valuation.
  • Credit check. Your bank or lender checks that all the documents you've provided are correct as well as verifies your identity. For this you will require 100 points of id or documents that are certified.
  • Valuation. A valuation of the property is required before your lender/bank will approve the loan.
  • Full approval. The lender or bank approves your loan and you're ready to settle.
  • Settlement. All contracts are signed, the mortgage fees are paid and the title is exchanged into your name or chosen entity.

Handy tips:

Proof of identity – It’s useful to photo copy your proof of identity and get it certified. This can be done through a Justice of the Peace, at your post office or through your accountant. Check your local council website for your local JP. This is a free service and organising certified copies will save you running around when you’re gathering all your loan documents

Additional documents – If you are a first home buyer, make sure you understand what documents you need to fill out to be eligible.

 

We understand buying property may be daunting for some while others just don’t have the time to search and negotiate. Our Buyer’s Agents are experts when it comes to searching and securing your dream property. Speak to one of our award winning team members for more information or email: buyer@advantageproperty.com.au