The Right Steps to a Perfect Loan

There are various stages to a home loan process. Application followed by verification then valuation, approval and settlement are the process to getting a loan sanctioned. The loan procedure is different with time and the requirements vary from time to time.

Application process

Step 1: Contact

a) Take and finish your home loan enquiry form, filling up all information about the basic of the home loan.

b) All your personal and home loan information needs to be completed in about 5 minutes.

Step 2: Submit the application

After we've talked and sorted things out, the application process will start. For this your details are to be submitted with the firm. This will include details to your income, assets, financial liabilities and monthly expenses.

Step 3: checking your info

This is the stage where we determine whether the info provided was correct or not. We do this by checking little things like bank statements, employment details, pay slips and all other details. A credit reporting agency then makes a credit check.

Step 4: Valuation Stage

After the property has been found, it is time for us to put it on valuation. This valuation is done to check whether the property you are purchasing can be a suitable security for the loan. This can be very different from the valuation done by a real estate agent. Make sure you are not paying anything above the market value.

In case you are buying a new home you will need to get:-

1. Copy of your executed contract of sale and land transfer

2. The solicitor and conveyance details that you will be using for settlement

3. Property valuation

In case you are looking to building or renovating

1. Copy of the building contract and its specifications

2. Valuation at different stages of construction

In case you are looking to refinancing

1. Property valuation

2. Contact details of solicitor

Step 5: Approval Stage

After your loan has been approved you will need

1. To review all loan documents carefully

2. Get independent legal advice otherwise

3. Loan documents signing

4. Getting them to the approving authority

Step 6: Drawdown of loans and settlement

All the three sides of the story come together at this point. This is where the purchase is finalized and refinanced.

On this date possession of the title is taken, followed by left out payments. After settlement the loan is drawn. Drawdown is when the lending agency settles the amount including all other charges.

Article Source: http://EzineArticles.com/8717765