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Beginner’s Guide: The Loan Process

Ready to purchase your first property but are unsure where to start? Finding the right home loan product for your first purchase can be daunting and confusing, but from pre-approval to post-purchase, Dominion Home Loans is with you every step of the way.



Home Loan Pre-approval

 

Pre-approval is a recommended step to take before seeking out and making an offer on a property, it lets sellers know that you are a serious buyer for the property you are considering purchasing and helps make for a more streamlined and stress-free experience for you.

 

A loan pre-approval takes into consideration your overall expenses, income, assets, and liabilities, and will provide you with a more certain indication of your borrowing capacity and eligibility for approval. This helps to provide reassurance that the loan will suit your needs and budget, and that your property search will be in the right price bracket for you to make a confident offer when you find your first home.

 

Your broker is there to make things easier; they will walk you through the information they need to obtain a lender pre-approval, provide you with great options based on your own personal needs and objectives, and then work to negotiate the best approval with your chosen lender. This approval is what we call “conditional” and will be subject to a valuation on the chosen property, and any other lender approval conditions such as deposit requirements.

 

Finding a property

 

Once you have found a property, it is now time to put in an offer within the terms of your pre-approval. At this stage you will work with your solicitor or conveyancer and the selling agent on the terms of the purchase, this involves discussing things like purchase timeframes. At this stage of the process, we will arrange to obtain a contract of sale, and progress your application to an unconditional approval. Your broker will always be happy to liaise with your agent and conveyancer as this helps make the process easier for you.

 

Final Approval

 

Final, or what we call unconditional approval, only occurs once your offer on the property has been accepted and a valuation has been completed and is accepted by the lender. At this stage, the loan contracts will be drawn up for signing, and your broker will walk you through all the next steps and help you with any questions.

 

Settlement and Funding of the Purchase

 

The great news is, once you sign the contracts your broker, conveyancer and agent will all work together to make the rest happen for you. Settlement is the final stage of the loan, where everything is finalised and the money is paid for the purchase. The lender will ensure the settlement is booked to occur on the agreed date on the contract of sale, and once this occurs you will be able to arrange to pick up the keys to your new home. Dominion home loans will still be there for you after your purchase, happy to answer any ongoing questions you may have.

 

Whether you are buying your first home or looking to invest, Dominion Home loans has you covered. Contact us today and let us take care of your home loan needs.


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