You are currently viewing How much time does it really take to secure a home loan?

How much time does it really take to secure a home loan?

Need a quick home loan? Well, you might just hit the jackpot. Many lenders are on a mission to speed up loan approval times, and guess what? Borrowers can also play a part in making the process even snappier.

Scouting for your dream home can be a bit of a journey, and once you’ve found the perfect spot, the pressure’s on to seal the deal pronto with that sale contract. However, the real test comes when it’s time for a home loan, and that’s when getting the timing right becomes absolutely crucial.

Here’s a positive scoop for home loan seekers: recent findings from the latest Broker Pulse survey reveal that major banks are setting new speed records in processing times. And smaller lenders are stepping up their game even further, with reduced processing periods. Good news all around!

But, hold up, don’t let that lull you into a false sense of security.

Ensuring your loan is ready to roll by settlement is critical – typically happening six weeks to eight weeks after you’ve signed and exchanged contracts (although this timeframe can potentially be negotiated with the seller).

Now, if you haven’t got your finances sorted by the settlement date, the seller might have the upper hand and could impose interest and penalty fees.

Clearly, there’s a lot at stake when it comes to getting your home loan approved promptly.

Guidelines for Loan Approval Timeframes

The speed at which your home loan gets sorted can differ from one lender to another.

While some lenders boldly boast about getting it done in as little as an hour, reality check – that’s not the norm.

To be on the safe side, plan for about four to six weeks from application submission to having the funds ready.

Now, if you’re in a bit of a hurry, we can step in to connect you with lenders who hustle a bit faster (and maybe give them a gentle nudge for good measure).

But here’s the real deal – it’s not just about speed. Focus on finding a home loan that suits your needs rather than rushing into a mortgage just because it can be arranged in record time.

Accelerating Your Home Loan Journey: 5 Handy Tips

Thankfully, borrowers have the power to make things move along faster in the loan process.

Check out these five steps you can take to keep your application and approval times on the fast track:

1. Talk to us first

We’re here to break down your borrowing power, give you the lowdown on the deposit size you might need, and make sure your finances are in the prime shape to score that thumbs-up from lenders. Plus, we’ve got the scoop on the latest estimates for approval times with potential lenders, thanks to our handy resources.

2. Get all your documents together

Round up all the documents that a lender is likely to request, such as payslips, birth certificates, and other forms of ID, along with bank account statements covering the past 6 months. Feeling a bit unsure? No worries, we’ve got your back.  We can help you with this step.

3. Hold back on any major life changes

Major life shifts, like kicking off a new job or venturing into a business right before loan application, might raise some eyebrows with lenders. Keep your budget and your regular spending/saving habits intact, along with sticking to your current job, to steer clear of those ‘please explain’ moments from lenders. It’s a smart move to dodge any hiccups that could slow down your loan approval.  Worse still, some life changes can lead to your loan been flatly declined by some lenders.

4. Ensure Accuracy: Double-Check Your Application

Errors on your application form may lead to the paperwork being sent back for corrections, slamming the brakes on the entire process. Fear not, though – we’re here to assist in minimizing any potential hiccups in your application.

5. Explore Loan Pre-Approval with Us

Holding off on applying for a mortgage until you’ve paid a deposit can be a nail-biting, high-stress game. Opting for loan pre-approval is a savvy move—it not only expedites the loan application process but can also give a potential boost to your bargaining power with vendors.

Give us a ring today on 1800-E-LOANS for more insights on getting your loan approved – we’re here to make the journey to your new home a smoother one.

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1800 35 62 67

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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