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The loan process explained – how a broker can help

By Rick Schafer

When you need to secure finance, it’s hard to know where to start. A mortgage broker can guide you through the home loan process and provide you with information and support to help you make the right decision when it comes to your loan. Understand how a broker can help you throughout the loan process by looking at each step below.

A chat with your broker

Here you’ll nut out your goals, your current financial position, and your borrowing power – to narrow down the kind of loans you’re after.

Understand what’s possible

Your broker will present a few loan options for you. You choose one, then they get to work – preparing and submitting your loan application to your chosen lender.

Getting the go-ahead (pre-approval)

If all goes well, within a few days you’ll get the green light to borrow a set amount for a set time (usually valid for three months). This gives you a clear idea of what you can spend – and everything you need to make an offer on a property.

Finalising the loan (formal approval)

You’ve made an offer on the property and now it has been accepted. All that’s left is the paperwork which a broker will assist you with. During this part of the process, your property will be accepted by the bank, the details of your valuation and insurance will be provided, and a settlement day will be scheduled.

Settlement – The big day

In this final stage, your broker will coordinate the lead-up to the settlement with your solicitor. Documents are signed to say you officially own the property and the funds from the bank or lender are transferred to the seller. Then you get the keys. Time to celebrate – the property is now yours!

After settlement

The role of a broker doesn’t just stop there. Loan products and rates are changing all the time, so your broker will be in touch at least once a year to make sure the loan that was originally set up for you is still competitive and is assisting you in achieving your financial goals.

Source: LoanMarket

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