Things You Should Know!
Time frames for the home loan process
Before an application can be submitted your information needs to be gathered, processed, a lender selected and lender application produced for your approval. Depending on a number of factors, this can be achieved in a few days or for more involved applications, a little longer.
From the time your home loan application is submitted to conditional approval can take as little as a day or two. It can also take four or five business days depending on the lender and delays they are experiencing. Formal or final approval may take another week or two for most applications. Complicated applications may take longer.
Buying at Auction
When you buy a property at auction, on the fall of the hammer you are legally bound to continue with the purchase and if you don't continue there are ramifications such as losing your 10% deposit which is also payable on the fall of the hammer. Talk to your solicitor or conveyance about any other potential issues.
This means that you need to have your finance approved before auction day. You should get a fully verified pre-approval from your lender and it is recommended that you also have the property valued if possible. If the valuation obtained after the auction does not satisfy the bank's criteria one of two things normally happen, the bank will lend you less or won't lend at all.
Not all pre-approvals are alike. Some lenders don't provide a fully verified pre-approval and a number of things could go wrong relying on one that has not be fully assessed.
Click here to find out more on pre-approvals.
When should you insure the property you are purchasing?
You should ensure you obtain legal advice as to when your building insurance should commence. If the vendor does not have building insurance on the property that you are purchasing and something occurs to the property between exchange of contracts and settlement, you could be very much out of pocket.