The loan process is highly regulated but does vary quite a bit from one lender to another. It also depends on whether you are looking for a new home loan, a refinance, first home buyer etc.
A typical process would be:
- initial interview – this is mandatory in order to comply with NCCP requirements and gather sufficient information to be able to move forward;
- application assessment – part of the information gathering usually done with a form. Information required includes income, employment history, assets and liabilities other expenses etc;
- product comparison – usually a report is provided give you a comparison of a range of potentially suitable products – usually a credit guide is provided at this stage;
- product recommendation – this can only be done once you have provided all of the information required in stage 1 & 2. Again this highly regulated stage of the process and usually a Proposal and Disclosure document is provided to you possible with a quote (if any brokerage fees apply) and a consent requiring your signature and permitting the broker to act on your behalf;
- all supporting documentation must be collected
- application prepared and submitted to the lender
- approval in principal obtained – with conditions listed
- valuation ordered – although with some lenders this can be done before stage 6
- unconditional approval issued and loan documents ordered from lender’s lawyers
- loan documents (mortgage contract) provided to client (or client’s legal advisor) these must be signed and returned to lender
- lender for any discharge of existing finance is notified with discharge authority
- settlement booked with solicitor and lenders
- settlement completed
Each stage has different timing and delays can and do occur along the way. Try to ensure that you minimise delays under your control eg: hassle your solicitor etc.