Home Loans Melbourne–Steps to Getting Your Own Home

Having your own home where you will establish your own family is every person’s dream.

Building a house is not easy if you do not have enough capital to pay for the labor and construction materials. It is a good thing that Home Loans Melbourne is here to assist you. They want to help you put that dream into reality. But first you have to pass some steps before getting your home loan approved.

First, you have to undergo assessment. A lender will not just lend you money without assessing or checking your resources. They have to make sure that you can afford to pay the loan. At this stage, you can expect that they will be conducting background investigations as well as income verification.

Your source of income will be thoroughly scrutinized. They have to be sure that the information you provided regarding your income is accurate. They will send out credit investigators to probe on your credit history. They will know if you have any unpaid debts. It is advisable that you be honest in your representations. Otherwise, any untruthful facts you have stated will be taken against you. This could eventually lead to the disapproval of your loan application.

After assessment comes the conditional approval stage. If the result of the background investigation, income verification, and credit check is positive, then Home Loans Melbourne will give its conditional approval for the loan.

At this stage, you may need the assistance of a competent mortgage broker to assist you. The broker will be compiling certain documents that the lender might be requiring you to furnish them. The security assessment stage will follow. Here, a person will be designated by the lender to make a rough estimate of your collateral or the property you intend to serve as mortgage assurance.

A valuation of the property you intend to purchase will also be made. It is important that your collateral be more valuable than the amount you intend to borrow. The lender is very strict when it comes to the valuation of properties. They will want to make sure that they will be getting back every cent of what you owe them.

If the lender finds that the collateral is sufficient, the next step is the lenders mortgage insurance stage.

The insurance serves to protect the lender from any loss arising from the acts of the borrower. An example is when the borrower fails to pay the loan. The lender only wants to be assured of the return of his investment. There are times when this insurance will only be required if the borrower is applying for a loan which is more than seventy-five percent of the collateral’s value. The availment of insurance is based on the sound discretion of the lender since such is for his protection.

The fifth stage for the Home Loans Melbourne is the formal loan approval. A formal letter of offer by the lender will be given to you. You should take your time in reading this letter and make sure that you understood all the terms and conditions before signing it. After signing this document, you will have to return it to the lender. The last stage is the settlement process wherein the lender will be giving the money needed by the borrower.