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purchase process
BROKER & CLIENT INTERVIEW
The broker will interview the client during the initial consultation appointment to understand the client’s loan requirements, as well as the client’s financial position (including family status, employment income, employment history, and any other income and liabilities) and the broker, may check approximate borrowing capacity for the client on the spot if the client can provide enough information. After the appointment, the broker will send out the credit guide, fact find form and documents request list.
The Fact Find form contains all the personal information and financial position. The Credit guide outlines the broker’s licensing and contains other information about the processes as required under the Responsible Lending Act.
PRE-APPROVAL
The first step of approval is called Pre-approval. Pre-approval is for purchase only and is not applicable for a refinance. Once pre-approval is granted, the client will know the maximum loan that the selected lender agreed to lend to them. We only submit pre-approval applications to lenders that offer a full assessment, which means that your income will be verified manually by a credit assessor. If your financial position remains unchanged, there are no issues with obtaining a formal approval. Once you provided the requested documents, we will verify the document and access the income, workshop on policies between lenders to ensure we find the best option for you, this process is called “verification”.
The broker will go through another consultation with the client to propose the loan structure and go through different products and features for your consideration. Once the client confirmed to proceed with the proposed structure and lender, we will prepare the pre-approval home loan application in our system, this process is called “data entry”. Then the broker will send the home loan application form and Statement of Credit Assistance for the client to review and sign as well as requests for additional documents if required. Once the signed documents are received, the broker will finalise for the home loan application to be submitted to the lender.
At JNM Finance, we also have a client portal called “Salestrekker where we will be sharing the application progress updates via email and SMS. The client can also upload the documents or send any notes to the broker via this portal.
Once pre-approval is granted, it is time for house hunting, if the client is interested in making offers for any properties, we can assist with the complimentary market report which they can use as guidance.
There are 2 types of offers: conditional or unconditional offers
Conditional offer
The vendor accepts your offer with a finance clause (usually 14 days), which means you have 14 days to apply for formal approval and pay for the required deposit. A conditional offer is only available via a real estate agent.
Unconditional offer
Is offer via auction, the deposit is due immediately once you won the bid and the deposit is non-refundable even if you can not obtain formal approval. In some cases, homebuyers also offer unconditional offers via real estate agents so that their offer can be more attractive to other purchasers.
FORMAL APPROVAL
When the signed contract of sale is fully signed by both purchaser and vendor, you need to send a copy of the contract of sales along with other supporting documents as outlined in the pre-approval letter to apply for formal approval. The broker will also reconfirm the loan structure with you before submitting the supporting documents. A valuation will also be ordered as part of the formal approval process.
Before you sign the contract of sale, you are required to have a solicitor (conveyancer) check for you. For refinance: no pre-approval process is involved instead application will be straight to formal approval, we also follow the same verification and data entry stages and once the file is being assessed, the lender will issue formal approval and no solicitor/conveyancer is required for a refinance.
SETTLEMENT PREPARATION
After the lender issued formal approval, it will take between 3-5 business days for the lender to issue the loan documents or loan contract. Once loan documents are issued, the broker will contact you to arrange a suitable time to assist you with document signing.
Identification verification and account opening are also required. If you are purchasing a new property, you need to arrange for a copy of the certificate of currency (home insurance). If you are refinancing, you need to arrange for an updated certificate of currency to update the Interested party (same as financier or mortgagee)
The broker will also provide estimated funds required calculation so you know how much funds you will need to deposit into the nominated account before settlement. Your conveyancer will also send you the settlement statement however the statement can only be available closer to the settlement date. By having the estimated figure, you can start to deposit funds earlier and be ready in advance.
After you return the signed loan documents to the lender, it will take 2-3 business days for the lender to go through the document verification, if everything is in order lender will make the file ready for settlement and will accept the settlement invite that was sent by your conveyancer as part of the settlement process. On the settlement date, once settlement has taken place, your conveyancer will notify you, you can then arrange a time with the agent to collect the key.
Post Settlement
After settlement, if you have any questions or if you require any assistance with your home loan, do not hesitate to contact us, we are always happy to assist.