Blue Key Finance offers you expert advice and support from interview right through to the settlement of your loan and beyond. We help you work out how much you can borrow, find you the most suitable loan, submit your application and guide you through every stage of the mortgage process.
To help you understand the loan application process, the following steps illustrate the process involved in purchasing or refinancing a property and the approximate timeframes for each stage. Please note the steps below are indicative and times may vary based upon the lender selected and the complexity of the loan application.
Download here the printable version of the eight steps to the mortgage process.
Step 1 – Pre-Interview: providing the necessary documents
Once you have made an appointment with us, we will call you to ensure that you have the following documentation ready for the interview. This is essential for organising your preapproval letter from your preferred lender quickly.
- Proof of identification (ID). Choose 2 documents with at least one being either a passport, drivers licence, birth certificate or citizenship certificate. The second document can be anything else other than the four documents mentioned before. Make sure the photcopy of your ID is clear and that we sigh your original ID during our appointment. NB: If your surname on any of the ID is different to your current surname please provide a copy of your marriage certificate as well
- The annual rates notice on all properties that you own
- If you pay your credit card in full every month then the last 3 months of credit card statements are required for that particular credit card account. If you do not pay your credit card in full every month then the most recent credit card bill will suffice for that particular cfredit card account.
- 2 recent consecutive pay slips (less than 4 weeks old)
- Latest payment summary or tax return
- If you receive a Centrelink allowance, then a copy of your recent Centrelink statement is required
- For purchases: Where your 'deposit' is held, the last 3 months official savings account statement plus an internet printout of savings transactions from the end date on your last statement up to today's date
- For refinances: Where your 'salary' is paid into, the last 3 months official savings account statement plus an internet printout of savings transactions from the end date on your last statement up to today's date
- If you have a personal loan, we will require your last 6 months personal loan statement plus an internet printout of the transactions from the end date on your lsat statement up to today's date
- Your last 6 months home loan statement plus an internet printout of transactions from the end date on your last statement up to today's date
- If either of you are over the age of 45, then a copy of your recent superannuation statement for that particular person is required
- If either of you are self employed:
- Last 2 years business tax returns and financial statements and last 2 years personal tax returns
- Your ABN
- Your Accountant's full contact details
The above 12 items are essential for organising your preapproval letter from your preferred lender quickly. If you don't have every document ready during our appointment, that is still fine. However, we won't be able to lodge your preapproval request until we have all the supporting documents required by your chosen lender. Any documents you collect after our appointment, please send them all to us in one envelope or via one fax.
Please note, your preferred lender may ask for further documents from you after we've submitted your preapproval request.
Step 2 – Interview
We will identify your aims and discuss the various types of home loans available. We will explain the credit policy, affordability, costings, repayments and fees, features and benefits that will match you to the best lender that suit your circumstances. We look at what is best for you now as well as in the future.
Once the appropriate lender and loan product has been selected, the loan application process begins.
Step 3 – Loan application process
Your loan application will be packaged and lodged with your chosen lender immediately upon receipt of all your required supporting documentation. Once lodged, we will receive confirmation of receipt from the lender within 24 hours.
Step 4 – Conditional Approval (pre-approval)
We will receive a conditional approval letter from the lender. Depending on the lender, this letter will be issued within 2 - 4 business days afer we lodge your loan request. Several lenders on our panel accept online lodgement and can provide a preapproval within 10 minutes.
The preapproval is normally valid for 90 days and can be renewed with lodgement of recent savings statements and proof of income.
Step 5 – Unconditional (full) approval
Once you purchase a property, we will give the lender a copy of your 'contract of sale' and request unconditional approval on your behalf. The lender will in most circumstances order a property valuation to obtain its market value. Once the valuation has been determined, the lender will seek their mortgage insurer’s approval (if required).
Obtaining an unconditional approval from your lender can take up to 5 - 10 business days from receipt of the 'contract of sale'. We will notify you, your solicitor and the estate agent once we have your unconditioanl approval.
Step 6 – Pre Settlement
- Your lender’s solicitors will send your mortgage contract and letter of offer to you. These documents outline the agreement between the lender, yourself and the State Revenue Office. They also outline the terms and conditions and costs of the loan.
- Have your solicitor/conveyancer and ourselves answer any questions relating to these documents.
- At this stage, you are required to take out building insurance on your property. We can arrange this insurance for you if you like.
- Sign and send these documents back to the lender so their solicitors can proceed to settlement. Once signed you’ve now entered into a credit contract.
Step 7 - Settlement
If purchasing
After you have returned your mortgage documents, your solicitor/conveyancer will contact the lender to effect settlement on the desired date.
If refinancing
After you have returned your mortgage documents the lender will liaise directly with your existing lender (if different) to arrange your property refinance.
Step 8 – Congratulations!
Your name and lender are noted on the certificate of title and settlement has been effected and your loan is in place.
Legal Requirements for Brokers
A Finance Broking Agreement (FBA) has to be signed in NSW and Victoria between the broker and the borrower before the broker can approach the lender on your behalf. The FBA ensures brokers fully disclose all details of the loan transaction, including any monetary or non-monetary benefits they receive. The MFAA asks its members to adopt this process in all States.