How to speed up your home loan approval

Published by MFAA

Every home loan application is unique, so the time between your first contact with your broker and approval can never be predetermined.

If an application is not completed correctly, you risk delays in approval or even being declined by potential lenders. However, you can do some things to help the process move quicker.

The most common reason for a delay is a lender’s turnaround time to assessment, especially when some lenders have competitive offerings and experience larger application volumes. Still, a lack of preparation can cause this delay to snowball. Here are some tips to speed up your home loan approval.

Be prepared

Every financial detail must be considered for a lender to assess your capacity to service loan repayments.

Other than the obvious documentation that needs to accompany an application – satisfactory identification and evidence of income by way of pay slips – many lenders will expect to see a reference from your employer, group certificates or tax returns, and records of any investments or shares you might have.

If you are self-employed, you will need to organise alternative documentation to prove income, such as financial statements relating to the profit and loss of your business going back two years.

Lenders will also want to see bank statements going back a few months to track your spending and savings history. Most importantly, you will need to provide the details of your debts.

Having all your documents organised, a savings and repayment plan documented, and evidence that you can commit to the plan will increase your chances of receiving the loan you are after.

Disclose all information

Lenders want proof that you can manage the responsibility of the loan through steady employment, good credit history and a debt-free approach to your financials.

To avoid back-and-forth requests that can delay your application, ensure your lender has a thorough understanding of you as an applicant, including appropriately identifying all borrowers.

Provide all the supporting and necessary documents upfront to your broker, have good, current information on your financial position and convey as much detail as possible about your requirements and objectives.

Your broker will not only need to have your full financial details but also take reasonable steps to verify them.

Skip the valuation queue

Not all applications require a valuation, depending on the property and lending institution and forgoing this step can save a considerable amount of time. You can also save time by completing a valuation before your application if it’s accepted by your chosen lender, but check with your broker first.

To ensure your application avoids any unnecessary delays, speak to us! We are a team of MFAA-approved finance brokers with the knowledge and experience to help you iron out the details. Contact us for more information.

An MFAA-approved finance broker is much more than your average finance broker.