How long does it take to get a home loan?

BY DANIEL WALSH AND LEIGH DELEDIO

Navigating the timeline for securing a home loan is crucial when diving into the property market.

Here’s a breakdown of what to expect and how to streamline the process:

• Understanding the timeline

Gone are the days of agonisingly long wait times for home loan approvals, especially with lenders streamlining processes post-pandemic. Typically, most lenders can now turn around applications in less than two weeks. However, the exact timeframe hinges on the lender’s workload at the time of application.

• Preparation is key

The application process can be daunting if you’re unprepared. To expedite the process, it’s essential to have your financial house in order. This includes maintaining organised accounts, avoiding overspending in the months leading up to the application, and ensuring bills are paid punctually. Consulting with a broker or bank early on can provide insights into potential equity, costs, and borrowing capacity, allowing you to plan effectively.

• Securing pre-approval

Pre-approval is a game-changer, offering buyers confidence and a smoother path in their property search. By preparing necessary documents in advance, such as payslips and identification, pre-approval can typically be obtained within two to eight days. While it’s not a guarantee, pre-approval gives buyers an edge in negotiations with sellers or agents.

• Refinancing considerations

For homeowners looking to refinance, the process mirrors that of obtaining a new loan, albeit with a broader array of lender choices. Despite the potential for substantial savings, the hardest part often lies in gathering and submitting the required documentation. Emphasising the importance of refinancing can help homeowners capitalise on significant savings.

• Settlement and beyond

Once an offer is accepted and a contract is signed, the bank conducts a property valuation before formally approving the loan. With a settlement period typically lasting four to six weeks, there’s ample time to convert pre-approval into formal approval.

With proper preparation, timely submission of documents, and leveraging pre-approval, the home loan process can be navigated swiftly and efficiently, whether you’re purchasing or refinancing.

Start the process today, head to ufinancial.com.au or scan the QR code to see which option is most suitable for you.