Monday, 10 December 2012

Mortgage application process

I’ve outlined the steps in a typical mortgage application lifecycle below.  For personal amusement, I’ve also included the days each step should take according to one mortgage broker’s website, slightly modified based on my experience.  I’ve found that the number of days varies widely across lenders and is highly dependent on the quality of your broker and the individuals the lender assigns to your case.

Step 1 - Home Loan Lender and Product Selection
Several days to several weeks or months (depending on how much effort you put in)

During this phase of the process, you do your own research and/or the broker will recommend products and home loan lenders to meet your needs.

Step 2 - Loan Application
0-3 days

In this phase, either you complete your preferred lender’s loan application, or the broker does it for you with information you’ve supplied.  This can be paper-based or electronic.  You must also send in a few (or a lot of, depending on the lender) supporting documents, such as verification of your income, assets, and liabilities.  If you are a first home buyer, you also submit a First Home Owners Grant (FHOG) application.  Once the application is lodged, you or your broker should receive a confirmation receipt from the lender.  For electronic applications, this could be immediate.  For paper-based applications, it could take 24 hours.