How to fast-track your home loan
Have you found a dream home or investment opportunity and need a fast home loan approval?
By acting quickly, being organised with your mortgage application documents and choosing the right lender, a quick home loan is possible!
The most common mistake in getting a fast home loan is not calling your bank fast enough.
Better yet, by calling one of our mortgage brokers in the morning to discuss your plans, they can often get back to you on the same day to give you an indicative approval.
Once you’ve made your decision on one of our three recommendations, you could have your pre-approval in another business day (case by case).
If you wait too late in the day, particularly on a Friday afternoon, you will not get an answer until Monday at the earliest.
This is essential if you have already paid your deposit and need to settle fast, although we always recommend that you get home loan pre-approval before paying your deposit.
Call us on 1300 889 743 or fill in our free assessment form and we can help you get a fast home loan approval.
Every day matters and this is where an online mortgage broker can really help!
Provide all of your mortgage documents
Around 80% of home loan approval delays are the result of missing documents!
By providing up-to-date mortgage documents with your application, all in one go, you can drastically reduce the time taken to reach home loan approval.
We often get clients who do not send through their documents quickly enough, send through their documents in pieces or send through wrong or outdated evidence.
These documents include:
- A completed fact find or short application form which is usually provided to you by your bank or mortgage broker.
- A scanned copy of your drivers licence, passport or Medicare card (whichever is applicable to you).
- Your two most recent payslips, or your last two years personal tax returns and financial statements if you are self-employed (low doc options are available).
- A copy of the Contract of Sale (you typically need to provide the first couple of pages for most states).
Warning: application document requirements can vary!
Depending on your situation, the documents you need to provide will vary so we recommend that you check out the mortgage documents checklist for an easy-to-follow guide.
The key is to try and send through these documents in the one email, the first time around and in full. That’s right, even blank pages.
Apply with the right lender
We can find the right lender for you from our extensive panel.
Home Loan Experts’ mortgage brokers also have priority service with select lenders, including the major banks.
Some lenders can even issue an electronic loan offer which can save a few days after your loan is approved.
Some lenders over-promise and under deliver when it comes to turnaround times.
For a bank trying to win over a customer, they have a strong incentive to guarantee approval before a certain date even if it is unrealistic.
This is particularly true for low-cost lenders or banks that are advertising an interest rate that is way below the rest of the market.
Like a petrol station selling petrol for 50 cents a litre, the lender will be flooded with applications that their settlement teams simply do not have the capacity to handle in a timely manner.
They are relying on your ignorance and apathy!
Over time, we have learned to rely on lenders that consistently deliver on their promises.
Alternatively, we will choose a lender that isn’t quite the cheapest on the market so there is a higher chance of a quick mortgage pre-approval.
How soon will I hear back from my bank?
It depends on which lender you apply with. These days, most major banks take around 13-24 business days to get you pre-approved for a home loan. Smaller lenders generally have a faster turnaround time of around 2-7 business days.
However, faster may not necessarily mean better. Usually, lenders with good offers and interest rates have to process a huge volume of applications. This results in a slow turnaround compared to a lender that does not receive as many applications.
More often than not, you may end up paying a much higher rate if you rush yourself into buying a property. To get a better deal, you should always consider getting pre-approved before making an offer on a property.
A pre-approval gives you the confidence to go out and bid on a property as well as time to apply with the lender with the best interest rates available at any given time based on your situation.
Get an upfront valuation
With some lenders, we can order a free upfront valuation at the same time that you are organising your mortgage application documents.
Lenders need to value the property as part of the application process so the other benefit is that our brokers can quickly find out whether your property is acceptable.
In some cases, valuers will complete a so-called “kerbside valuation” just to check the property exists.
Once the valuation is complete and it meets the bank’s policy, you could receive unconditional or formal approval within 24 hours.
If the property is unacceptable, we can quickly move on to another lender that will offer a more favourable valuation or one that is more flexible in accepting the property type.
With some lenders, no evaluation is required at all depending on the nature and location of the property (case by case basis).
Tell your broker about any problems
When completing the short application form, it’s essential that you are honest about your current personal and financial situation.
There may be potential credit issues regarding your situation that may see your home loan declined.
We can often negotiate a policy exception or choose another lender if you tell us during the preliminary assessment before we submit your application.
Getting declined only creates more problems so check out the 11 most common reasons for home loan decline.
Your mortgage broker can help you but we can only help you if we know the entire story.
Can a private lender help?
Private lenders have a much greater capacity to issue fast home loans because they tend to receive fewer applications.
The issue is that privately are usually just a short-term solution and they are expensive.
To give you some idea, interest rates for private lenders can range anywhere between 12% and 48% per annum.
In most cases, they are best avoided unless you’ve paid your deposit and you need to settle within a week.
The best approach is to be prepared!
By working with us, replying quickly and acting fast, we can often leverage the strong relationships we have with our panel of lenders to escalate your application and get you approved quickly.
However, the better approach is to for your home loan application at least 3 months in advance.
The reason is that lending policies can change frequently, particularly when it comes to:
- Investment and interest only loans.
- Home loan living expenses.
- Unusual employment and low doc loans.
- Bad credit.
- Genuine savings.
We highly recommend that you do not pay your deposit until you have been pre-approved for a home loan!
Have a read of the preparing for your application page for more golden rules such as holding off on changing your jobs until after you have submitted your application.
Discover how we can get you approved for a fast home loan by calling 1300 889 743 or by completing our online enquiry form.