Applying for a loan, whether it be a home loan, a car loan or a personal loan can be a daunting task, but it doesn't have to be. Mortgage brokers take the hassle out of applying for loans. We assess your financial position and link you to the most suitable loans on the Market. We manage the loan process end-to-end. Meaning that we facilitate the process between the banks and yourself. We take out any ambiguity out of the process and make it a smooth, hassle-free process.
Before we explain the Loan Process, lets be clear on two facts.
Fact #1: We don't charge you anything
An often misunderstood concept is that people thing Mortgage Brokers charge you a cost, or that they get a cut or profit on your expense when they link you to a loan. This is absolutely incorrect. Mortgage Brokers are like an extended team from the Banks. The Bank pays us for every successful loan. You still get the same deal (and often better) than if you were to go directly to the bank. It literally does not cost you anything more by going through a broker, but it can save you money and hassles. We compare hundreds of loans and negotiate with the banks on your behalf to get you a better deal.
Fact #2: Your loan is with the Bank not the mortgage broker
Another myth is that if the Mortgage Broker goes bust or bankrupt you will lose your house. The short answer is No, you will not. Your loan is with the Bank, not the Mortgage Broker. The mortgage broker does not have access to your money or deposit, and at no point is the mortgage broker issuing you a loan. In fact, once your loan is approved and finalised, the mortgage broker's job is done. From that point on you deal with the Bank directly, and make your repayments to the bank.
Now that we cleared the air, lets look at the Loan Process
Here is short guide on what generally happens when applying for a loan through a mortgage broker
Appointment with Loan Link (you can quickly book one via our Contract Form) During the appointment, generally only about an hour in duration, we discuss your goals, financial position, life style and the investment you want to take (e.g. reasons for your loan). We normally do a quick analysis on your borrowing power, repayment options and available loans. We normally do our homework after our meeting, to find you the best available loans and packages.
Loan Application (you can save time by filling in our pre-approval form before your appointment) After selecting the most suitable loan package, we proceed with the Loan Application, which generally takes about 1-2 days. We gather all required documentation such as Payslips, IDs, Bank Statements, ATO Notice of Assessment, etc. and guide you through the application.
Conditional Approval (3-5 days) Once we submit the completed loan application to a lender, they will review it and provide a conditional. The conditional approval enables you to start looking for properties with a comfort that as a borrower you meet the requirements of the lender. It gives you also some confidence and more negotiation power knowing your borrowing limit when looking for a property.
Unconditional Approval (5-10 days) If you have already found a property, then upon receiving the Conditional Approval, the Bank will organise a Property Valuation and conduct credit checks. Upon satisfaction the Bank will proceed to issue you an Unconditional Approval. This means they acknowledge and approve your home loan application, and we can proceed to finalising the purchase of the property. We will keep you informed throughout all stages of the application.
Loan Documentation (5-8 days) After the loan has been unconditionally approved the Bank will prepare Loan Documentation and send it to us. We will explain and guide you through these documents and ensure you are comfortable in signing them. This is a major financial step and obligation and need to be not rushed. At any point of the process we can refer you to Legal or Financial advisors to help you understand, plan and make informed decisions.
Loan Settlement If you are purchasing a property, the conveyancer or lawyer will prepare the required documentation based on the Contract of Sale that the Real Estate Agent has drawn up for you. The conveyancer or lawyer will liaise directly with the bank and lead this process to completion. We will be kindly in the background to assist you with any queries you may have. Loan Link has a number of experienced conveyancers that we refer our clients to, so be rest assured that you will be covered from the moment you contact us to the completion of the new loan and beyond.
Keeping in touch After the Loan Settlement is when we generally conclude our business, however it's the point where we have already became friends and strive to keep in touch from time to time. We continue to look at the markets and suggest to our clients any strategic moves with regards to their mortgage. Whether it is to refinance or to invest, we are there for you.