The Mortgage Application Process

The Mortgage Application Process: From Appointment to Settlement

Applying for a home loan or investment property mortgage can feel like an intimidating process filled with lots of paperwork, verifications, and unfamiliar steps. As an aspiring homeowner or property investor, understanding what to expect along the journey can help reduce stress and put you in a position to act quickly when needed.

At Investors Mortgage, we aim to make the mortgage process as seamless as possible for our clients.

Here's a walkthrough of the typical journey from your initial interview all the way through to the settlement and final loan funding:

Book An Appointment With Your Broker

Your first step is an informational chat with one of our experienced mortgage brokers. This informal meeting, which can occur in person, over video call, or by phone, serves a few key purposes:

We'll discuss your homeownership goals, budget, timeline, and any properties you're considering.
You'll provide an overview of your current financials - income, assets, debts, etc.
We'll collect the initial documentation needed to start pre-qualifying your home loan.
We'll outline the overall mortgage process and get your questions answered.
This appointment allows us to assess your lending scenario and provide an estimate on mortgage approval amount, interest rates, and loan programs you may qualify for based on your situation.

Mortgage Pre-Approval Application

Using the details gathered in our appointment, your mortgage specialist will move forward with a full pre-approval application on your behalf with the proposed lender. This process includes:

Conducting a credit check to verify your full credit history
Verifying your income sources, employment, and ability to service the loan
Reviewing all your financial documentation like tax returns, bank statements, etc.
Securing a formal pre-approval letter provides peace of mind that you can afford homes up to a certain price point and starts the formal loan approval process with the lender of your choice.

Property Purchase & Loan Approval

With pre-approval in hand, you can confidently start touring properties and making offers - giving you an edge over buyers who haven't started the lending process yet.

Once you have a property under contract, your mortgage team will formally apply and get final approval on the pre approved loan with your lender. This may require additional financial documentation and verifications.

The loan approval stage also involves having the home you've purchased appraised to confirm its value and condition. The lender will send out an independent valuer for this step.

Signing Mortgage Documents:

After formal approval, usually within 2-5 business days, your lender will send you a full pack of mortgage documents to sign. It is important that you read all of them carefully and sign all of the required sections accordingly.

Mortgage Settlements:

If you're buying a house, the settlement date would be as per the construct of sale. Your conveyancer or solicitor will be booking in a settlement time with the lender and handling the closing process. If you're refinancing, it is always a good idea to complete a discharge request with your current lender as soon as you receive the formal approval, as discharge may take up to 10 business days.

The whole process from start to finish may take anywhere from 14 - 60 days depending on your contract, loan type, the lender's timeline, and any potential hiccups along the way. But with an experienced mortgage team guiding you, it doesn't have to be as daunting as it may seem initially.

Kick starting your mortgage journey with Investors Mortgage means you'll have a dedicated loan specialist holding your hand through every step of the application process. Reach out today to get pre-approved and start your path to homeownership off on the right foot.