THE REDUCE HOME LOANS PROCESS
Ever wonder what goes on behind the scenes when you’re getting a mortgage? We’re here to guide you.
Keep on reading to find out the process of applying for a home loan. From your first thought, right through to settlement.
1. You’re thinking about getting a home loan
We understand at any stage in your life, you can be considering getting a home loan.
Whether you’re a first home buyer, refinancing to consolidate your debts or investing in your next property, Reduce has the tips and personalised advice you need.
2. You’re weighing your options
There are over a hundred lenders across Australia. Reduce operates nationally so you know you can get a low-rate loan no matter where you’re from.
You can also compare our different home loan products directly to find a loan that suits your needs.
3. You’ve made your decision and are ready to apply… great!
This is the biggest step for any home loan application. You can apply for any Reduce loan by visiting our home loan pages and choosing the product that’s right for you, or give us a call on 1300 REDUCE (733 823) and chat to one of our accredited Personal Finance Managers if you’re not sure. We don’t bite, promise.
By calling us directly, your Personal Finance Manager will provide advise, complete a servicability check, answer any lending questions and send you the forms you need to complete and send back to us.
4. Application forms returned
Once your Personal Finance Manager has received all the paperwork needed, we submit it to Credit Approval Officers to be Conditionally Approved.
It can take up to 3 days to receive Conditional Approval.
If Credit requires any further details, your Personal Finance Manager will let you know immediately.
WHAT DO I NEED?
Typically, documents required to secure a home loan include:
- Payslips & proof of sustainable income
- Assets and Liabilities
- Miscellaneous documents – may apply depending on your own circumstances. Call our Finance Managers to find out what’s required in your situation.
5. Conditional Approval
Great, the first step toward home loan approval is done. With your loan Conditionally Approved, it gives you an idea how much the funder is willing to lend you. According to your application papers, you’ve proven to the funder you can service the loan amount you applied for once it settles.
There may be some further documentation you will need to complete, in order to achieve Formal Approval. Your Personal Finance Manager will contact you at every stage to collect required information and answer any questions you may have.
Valuation for your home is also booked at this stage.
6. Valuation of your home
A valuation company representative will contact you after Conditional Approval. They will provide a valuation of your home you are looking to buy. This is a more accurate pricing guide of your home, as opposed to looking at local and suburb trending data on real estate websites.
The valuation representative will inspect the property and report back to the lender and your Personal Finance Manager.
7. You’re Formally Approved!
Your loan application has been Formally Approved by the funder, congratulations! This means the funder has accepted your property purchase as an acceptable security for the loan amount and terms you have requested.
You will need to provide your Personal Finance Manager with purchase documents from the Real Estate and agree on a settlement date.
Many lenders offer different waiting periods between Formal Approval and Settlement. It can take between 6 weeks to 3 months to settle a loan.
8. Settlement of your loan
Finally, the long haul is over. When reaching Settlement date, all parties (buyer, seller, realtor and lender) sign the purchase or property transfer documents. You receive the loan funds, the keys and the property is in your name.
So get those keys and step into the house that is now yours!
If you refinanced, sit back and enjoy your better rate!
Find the Cheapest Home Loan that’s right for you
No matter what stage of the home loan journey you’re at, we’re here to help you find a great rate across variable, fixed or a mix of both.
Our home loan range also offer great features and flexibility, so you can apply with confidence.
Why choose Reduce?
COMPARE OUR HOME LOANS
Compare rates, features and fees across all our home loans in this easy table.