Purchasing a home is often one of the major expenditures we make, so don't allow the process of acquiring financing overwhelm you. Simply do each of these six actions one at a time, knowing that Wealthy You are there to assist you at every point.
Six Steps to Home Loans Explained
- Conditional Approval
- Property valuation
- Formal approval
- Insurance
- Loan documents
- Settlement
Conditional home loan approval
You can apply for a home loan online or phone us first to discuss your specific requirements. We will send you a letter of offer with any outstanding items you still need to arrange after we conditionally approve your loan.
A property value, title insurance, and a certificate of building insurance are frequently included. We may also need to confirm some information, such as arranging a background check.
Your Wealthy You Home Loans credit manager will go through them with you and assist you in meeting any requirements.
Property Valuation
We always require an appraisal of the property you intend to use as collateral for the loan. An impartial registered valuer, who may be required to enter the premises, performs these. Others conduct kerbside valuations.
Valuers consider your property's location, condition, and any upgrades made, as well as any special or negative attributes, recent transactions in the neighborhood, and other variables. It's not a precise science, and different Valuers may arrive at a different conclusion.
Formal Approval
We will offer you a letter of formal approval once all conditions have been met and the property assessment has been completed.
This is crucial if you're buying a house: if you haven't received formal approval before your finance is due and you can't get an extension, you may be legally obligated to buy the house even if you don't acquire finance.
Once formal permission has been achieved, we shall ask the solicitors to prepare and transmit formal loan documentation to you or your solicitors.
Take Out Insurance
General insurance
All lenders require you to take out building insurance in case of an accident, such as fire. If you do not have insurance and your property is destroyed, then you will be paying off a loan for something that is no longer there!
Make sure your house is insured for at least the minimum we request, and it notes either
AFSH Nominee’s Pty Ltd or Perpetual Trustee Company Limited. We will advise you on the lender to be noted on the policy. The lender must be noted as an interested party or first mortgagee
If you are purchasing a property, this insurance must cover you from the time of acceptance, not when it settles. Most insurers will issue you a cover note, so if you do not go ahead with the purchase you can cancel the insurance.
Life insurance
It’s important to protect your ability to meet your repayments. So we also provide insurance to help you manage and unexpected life events – because we want you and your family to enjoy a secure future in your own home.
Our partner Financial Planners can advise you on the most appropriate insurance policies. This is obligation free – but it may make all the difference to your future.
Loan Documents
Once loan documents have been sent to you (or your solicitor) you will need to sign them after your solicitor checks them for you. They can also help you sign in the correct places to save time as if you make mistakes they will be sent back.
You can also get a Justice of the Peace to witness your documents, and if your refinancing this may be a simpler option. But as your house is probably your most valuable asset (and your mortgage is a significant debt), the solicitor’s fee is a wise investment in your piece of mind.
Settlement
The moment has arrived at last – settlement day. If you’re buying a property, this is the moment you own it. If you’re refinancing, this is the day your other debts are paid off or extra equity is made available to you, and we take over managing your mortgage.
On settlement day our solicitors will arrange to meet with your solicitor (if you’re using one) and the vendor’s solicitor to arrange the necessary paperwork and funds transfer.
You don’t need to attend this meeting. We will call you once we have confirmed that settlement has been completed.
If you are thinking about the process of your home loan, contact us to explain further, before making a decision. Wealthy You is here to help you with your banking needs. Visit us at a local branch or online to learn more about our home loan options.
