Pursuing your dream of an own home is quite achievable. But the right amount of finances is the pre-requisite.
Therefore, home loans are likely the best option for many home buyers. But the loan process can be daunting if you haven’t a clear knowledge about it.
Often the hopeful borrowers are worried about the final verdict of home loan. Some may even ponder upon the time to know the result.
The success of home loan application depends on how the application has been prepared and presented to the lender.
To reduce the time of loan approval, a strong application is a key.
The home loan approval time merely varies from lender to lender. The nature and complexity of the circumstance may also affect the approval process.
Ideally, an initial approval may take between two days to two weeks depending on various factors.
Therefore, it’s wise to consider some factors in the home loan approval process. It will bring your peace of mind before setting any expectation.
You may also hope to have a favorable outcome within a legitimate period of time:
So, here are some of the major factors that affect home loan approval process:
The Valuation of Property:
you may hope to get a conditional approval after lodging your loan application. However, the lender usually makes an assessment of your application. And then offers the conditional approval.
The process starts with the valuation of the property. An advance valuation can expedite the process. But the lender may or may not accept it.
Zoning, property size, the condition of the property etc are some of the factors that can cause refusal of your application.
Capacity to Repayment:
One of the most important factors in home loan approval process. The lender strictly assesses your repayment capacity.
All your income and liabilities come into play here. Indeed an accurate and complete information are the keys to win. So, the stronger your financials are the better chances of a successful loan.
Therefore, the trick is to calculate your browning power. You can do it before applying for any amount of home loan. Take help from expert brokers. Or choose any online calculators to check your browning power.
Click here to calculate “how much can I borrow”.
Previous Financial History:
Your financial history is another factor in home loan approval process. The lenders tend to spend more time to check and cross-check the history and existing liabilities.
As a result, it may delay the overall home loan approval process.
Any non-disclosure of liabilities is the biggest red flag for the lender. The trick is full and honest disclosure.
Despite these general factors, your overall circumstances may affect the home loan approval process. Our advice is to keep an eye. Try to follow up on the progress of your application after the lodgment.
Potentially many prefer to opt for broker supports. It can save your time and effort in submitting the application. A broker also updates you on progress and notifies the outcome.
Your broker will also advise you of when to expect a formal letter of approval if your loan is approved.
If you are yet to file any loan application and looking for better services, Finmortg can help you.
Contact us to get our free expert advice.
We help to simplify the home loan application and approval process. We aim to create the strongest application for you.