Home Loan Application Process (How it Works)


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Russell Munfaredi

Russell Munfaredi is the Managing Director and owner of Mortgage Pros. Russell’s wealth of knowledge, unstoppable drive and impeccable service has been the key driver of Mortgage Pros’ success.

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Going through the entire home loan application process can be overwhelming, especially if it’s your first time. But it can be a seamless and stress-free experience with the right mortgage broker to guide you all the way.

Here are the basic steps when applying for a home loan to give you a headstart!

Reach out to a mortgage broker

The fastest way to know whether you qualify for a home loan is by calling a mortgage broker and getting evaluated.

Partnering with a mortgage broker from square one gives you the following advantages:

  • Stress-free application
  • Access to a full range of banks and lenders
  • Hands-on assistance throughout the process, from preparing your documents, doing the legwork, pending approval, and post-approval assistance.
  • Bespoke finance solutions and specialist lending if you don’t prefer standard loan policies
  • Fast and smooth loan approval with a loan specialist involved
  • Get approved for tougher home loans with our senior brokers
  • Negotiate competitive and exclusive interest rates and other loan benefits on your behalf

Moreover, our mortgage brokers are paid for by banks and not by you, so you get more bang for your buck and trust that we’re not crooks ripping you off!

Call us at 1300 030 388 or complete our free assessment form to kickstart your home loan application process.

Primary Discussion and Evaluation

Our senior mortgage brokers will invite you to sit with us for an initial discussion about your financial situation, unique needs, and long-term home objectives. We’ll do a quick assessment to confirm your eligibility for a home loan and ensure that we can find a loan package that suits your needs.

We pay attention to detail, explain how each home loan option works and lay down all expected costs, such as stamp duty, interest rates, loan feature add-ons, and other processing fees/charges.

Moreover, you also have the floor to clarify any confusing policy terms and have us answer all of your questions about the application process before we hit the road and get started.

At Mortgage Pros, you can rest assured that you get the following benefits wherever you are in Australia:

  • Compare several loan options that fit your financial situation
  • In-house borrowing capacity assessment without harming your credit score
  • Get expert advice on taking up your first home loan
  • Have effective alternatives if one approach isn’t promising
  • Get ongoing assistance throughout the process and on post-settlement
  • Have peace of mind and know that you understand each step of the entire process

Our senior mortgage brokers have your best interests in mind and will strive to deliver the best loan options and home loan advice at your disposal.

We’ve partnered with countless Australian homeowners, and they can testify to our workmanship and approachability.

Complying Documents to Your Broker for Application

If you do, we’ll ask you to complete the Short Application Form (SAF). This form will collect your basic details (name, address, etc.) as well as your employment history. The SAF will give us insights and a good understanding of your financial situation.

Afterwards, our mortgage brokers will ask you to provide the basic documents most lenders and banks require. These documents, your SAF, and our previous discussions help our brokers fully assess your financial situation and guide you in making informed decisions.

What documents do I need to submit?

It widely varies from lender to lender, but common requirements to apply include:

  • IDs: Birth certificate, passport, driver’s licence, Medicare health card, and/or bank ATM card
  • Any proof of income: We recommend the latest payslips for two payments (for PAYG), ATO assessment for casual employees, or ATO Notice of Assessment and the latest two consecutive tax returns for self-employed individuals.
  • Bank Statements: Statements for your savings account, term deposits, and income over a given period.
  • Current home loan statements (if applicable): If you have an existing home loan, we’ll ask for home loan statements for the last six months and contract of sale, whichever is applicable.
  • Proof of assets and liabilities: Documents of your properties, vehicles, or liability statements such as car loans, student loans, and other unpaid debt.

Other requirements for certain situations:

  • Gifted deposit: You may need to provide the gift letter associated with the cash gift
  • For low-doc loans: An accountant letter (to substitute financial statements)
  • Loan defaults or missed credit payment: A formal letter explaining the default or missed payments.
  • Self-Managed Superannuation Fund (SMSF)
    • A certified true copy of the super trust deed & custodian trust deed
    • Income tax returns and financial reports for the last 2 years
    • Proof of capacity to meet super contributions for newly established SMSFs.
    • Bank statement, share portfolio, and other proof of your SMSF deposit

Verifying Details and Reviewing Your Application

At this point, your mortgage broker will conduct a detailed evaluation to verify your requirements and assess the risks to your lender. After we prepare your documents to be submitted to your lender, you will review the complete documentation and affix your signature once you agree.

Depending on your situation, we may request a few more documents to strengthen your home loan application. During the evaluation and review, your dedicated mortgage broker will:

  • Work out your financial strength and borrowing capacity
  • Gather a list of lenders who will accept your application
  • Compare the best home loan rates and discuss them thoroughly with you.
  • Suggest the right home loan package and ensure you know the terms and policies for the entire loan term.
  • Point out any potential problems for the lender
  • Finalise your documents and submit your final application to the lender.

Submitting your loan application

After you sign the forms and hand them over to your Mortgage Pros broker, we will forward your application to your lenders’ system and/or loan application portal.

This is where the waiting game begins. Your lender should suggest a waiting period or time frame for them to go through your application.

While you sit down and wait, our mortgage brokers have all their attention on the line, since your lender may request additional paperwork along the way.

Home Loan Approval!

Getting your home loan approved isn’t a walk in the park. In most cases, it involves the following steps:

Assessing your loan application

Your chosen bank/lender will assess your documents. If they deem your application satisfactory, you may get conditional approval, meaning it has been pre-approved!

Furthermore, pre-approval is valid for three months. You can even get pre-approved even if you still haven’t chosen a property to buy!

Once you get pre-approved, you can confidently search for a property!

Moreover, getting your home loan pre-approved doesn’t guarantee formal approval. Before your loan is green-lit, your lender will conduct a few checks and valuations before granting formal approval.

Property valuation

Once you choose a home you want to purchase with the home loan, a third-party valuer will check whether the lender will face a high or low risk by approving your loan. But don’t worry about banks rigging it, as the valuers are separate entities and aren’t employed under your lender.

Getting approved!

If the final assessment and property valuation go well, you’ll receive unconditional approval, better known as formal approval, from your lender. This is where you get the green light and borrow the agreed amount in your application.

How Long Do I Have To Wait?

A home loan turnaround period may take anywhere from 3 days to 3 weeks, depending on your lender, financial situation, and the complexity of your home loan. Some non-bank lenders don’t need much information, but other banks want to see more.

But in general, it’s safe to say you can get approved around 2-3 weeks.

  • If we can submit third-party valuation reports at the start, lenders usually skip this step and get you approved within 1-3 business days.
  • It may take another 3-5 business days to approve if we still need to evaluate the property.
  • Self-employed applicants may need to wait for longer periods
  • Larger properties, like hobby farms, may require a long-form valuation, resulting in a longer assessment period.

Accept and sign your loan offer

Once you get unconditional approval, you’ll receive a loan offer document from your lender along with the loan contract for you to read, accept, and sign.

Now, we know pages of fine print can be overwhelming, especially for busy borrowers. But you can always seek legal advice from a solicitor before signing. Otherwise, our senior mortgage brokers can comb through the contract and explain the loan policies and terms.

We’ve worked with all types of loans from major banks and non-bank lenders and have read several pages of loan contracts. We understand the crucial points and can determine nuances in the contract that may put you at a disadvantage.

But if everything checks out on all ends, you will then accept the loan and sign the contract and other attached documents. Then our broker will return them to the bank, and all the legwork is complete.

Post-Approval and Settlement

This is the last stage of your home loan application process. During settlement, your lender will confirm and certify that all loan documents and contracts are in order and that they can advance the loan.

If you are in the process of buying the property, you will need to inform your conveyancer or solicitor about the transaction. They are in charge of transferring the title ownership from the property seller to you.

If you’re using the loan to refinance, your new bank or lender will contact the existing lender to repay the loan, and your new lender will receive the certificate of title. Your partner mortgage broker will let you know when the loan is advanced.

Mortgage Pros Will Keep in Touch in Post-Settlement

If you’re worried that we’ll cut you off as soon as your loan has been settled, then fret not. At Mortgage Pros, we provide a dedicated customer care staff to look after your home loan after settlement.

We value your trust and stand out as a competent mortgage broker simply because we guide you throughout your home loan’s term and deliver the best solutions tailored to your needs.

Aside from answering all your concerns and queries, we’ll also guide you through growth and help you make smart decisions, additions, and amendments throughout the life of your loan.

Our ongoing support services include the following:

Few Weeks Post-Settlement

We’ll keep in touch to discuss your post-settlement situation, ensure you’re catching up, and completely understand the loan terms, the repayment process, and how your interest is calculated. Your dedicated mortgage broker may also request a copy of your loan settlement and contract so we know you’re being charged correctly.

Annual Review and Discussion

Your circumstances may change at the end of the year. That’s why your senior mortgage broker at Mortgage Pros will reach out every year to review your home loan and discuss whether you’ve had any problems.

You’ll always get expert assistance from our senior mortgage brokers long after you’ve settled your home loan, including the following services:

  • Reviewing your current home loan rate and switching to another loan product if needed
  • Assessing your property value year after year to determine whether you can access equity and move your finances effectively.
  • Adjusting loan repayment schedule to complement your change in salary schedule and other financial needs
  • Providing first-hand industry insights and helping you make informed choices.

Are there other entities involved in my home loan application?

For the most part, you’ll be speaking with your mortgage broker. But several parties will be involved throughout the life of your loan, such as:

  • You (the borrower)
  • Your senior mortgage broker
  • Property valuers (third-party)
  • Property inspectors (building, pest, etc.)
  • Solicitor and conveyancers
  • Banks, non-bank lenders
  • Real estate agents (when looking for or buying a property)
  • Property tenants
  • LMI providers and insurers for home loans over 80% of property value

Mortgage Pros is your first step to homeownership

Mortgage Pros is committed to providing bespoke mortgage solutions unique to each borrower. Our credit, banking, and financing expertise helped our clients land their dream homes with competitive rates and flexible loan features.

No home loan is tough enough with our team to back you up. Apply for your first home loan at Mortgage Pros.

Additionally, if you’re a doctor or a medical professional, we can help you access exclusive home loans for doctors, saving an average of $80,000 on the lifetime of your home loan.

Speak with our senior mortgage brokers at 1300 030 388 and fill out our free assessment form to get started with homeownership!

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We’re available 8am to 8pm, 7 days a week & work Australia-wide! There is no obligation, we‘ll get back to you within 5 minutes during business hours.

We’re available 8am to 8pm, 7 days a week & work Australia-wide! There is no obligation, we‘ll get back to you within 5 minutes during business hours.