Home Loan Application Process

Once you have selected the home loan that best suits you, we will collect all information, documents and a completed home loan application and submit them to your chosen lender.

• Step 1 - Assessment
• Step 2 - Conditional Approval
• Step 3 -Security Assessment
• Step 4 - Lenders Mortgage Insurance
• Step 5 - Formal Loan Approval
• Step 6 - The Settlement Process

Step 1 - Assessment

At this stage, your lender wants to determine that you can afford the loan repayments. They will conduct income verification and ensure that the information you have provided is accurate.

A credit check will then be carried out to reveal your credit history; in this case the lender will obtain a credit report that will show:

• Personal details such as: name, residential addresses, date of birth, drivers license number and current or previous employer
• Records of some current credit accounts
• Overdue Accounts (Defaults) which may have been listed against your name, including an indicator on whether the default amount has been paid or not.
• Bankruptcy Act Information
• Court Judgements and Writs & Summons
• Public record information such as Directorships and Proprietorships
• As your credit history plays an important part in the home loan application process, it is always advisable to obtain a credit report and clarify any unresolved issues before lodging your loan application.

Step 2 - Conditional Approval

Assuming there are no major issues with your income verification and credit checks, the lender will provide conditional approval for your loan.

Your mortgage broker will inform you of the decision and assist you in compiling documents should your lender require any further information.

Step 3 - Security Assessment

A qualified valuer will conduct a valuation on the property you intend to purchase and any property that will be used as security.

The lender will then assess the valuation and determine if the property is suitable for mortgage lending purposes.

Step 4 - Lenders Mortgage Insurance (LMI)

Lenders Mortgage Insurance is usually required when you’re borrowing more than 75-80% of the property’s value. It is important to note that mortgage insurance serves to protect the lender from any loss which may occur as a result of a default by the borrower – it does not insure your home and contents.

If mortgage insurance is required, your mortgage broker will seek “sign off” from the relevant mortgage insurer.

Step 5 - Formal loan approval

If successful in the previous steps, your loan will be unconditionally approved and a formal Letter of Offer will be issued. You will need to carefully read this document, sign and return it to your lender, making sure the information is correct and that you understand all the terms and conditions.

Tridential will be there to guide you through this step and answer any questions you may have.

Step 6 - The settlement process

Once you have formally accepted the lender’s loan offer, they will issue loan documentation, which should be forwarded to your solicitor who will then liaise with the lender to ensure the loan documentation.

On the day of settlement you will receive the funds and your first home loan repayment will usually be required one month after the settlement date.

Remember, we will be there to assist you at all stages of the home loan application process. Simply complete the brief Tridential online enquiry form and one of our experienced mortgage brokers will contact you and guide you through the home loan application process.