The Mortgage Home Loan Process

By: Aaron Robbins0 comments

Outlined below, we cover what you can expect during the mortgage home loan process.

You can also watch a video about this information here:


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Step 1 – Interview with Mortgage Broker

During the initial meeting with your Diverse Funding Solutions mortgage professional, they will listen to your requirements and get an understanding of where you are financially and what you are aiming to achieve.

Your lending professional will chat with you and explain the features and benefits of loans that may work with your situation.

They will provide numerous options available to suit your needs.

Once you are satisfied the loan product discussed will satisfy your objectives, the loan process will commence.

To gather raw information about you and your unique situation, we have a simple online questionnaire that can be done in your own time and on any device.

Uploading of documents including bank statements and identification is also done online – it’s very easy!

Step 2 – Mortgage Loan Application

Your friendly mortgage professional will work with you through a number of documents.

Some of these documents include a Credit Quote & Proposal (which includes product recommendations).

They will also outline what is required in relation to supporting documentation required so your home loan application can be lodged and process with the lender smoothly.

Your mortgage professional will answer any questions you may have about the selected proposed products.

Once decided, the application form and other associated documentation will be filled in and lodged by your mortgage broker.

We make the mortgage process simple and handle all the documentation for you.

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Step 3 – Application Assessment

The lender will check and assess your application to determine whether you meet their credit criteria.

This process can include confirmation of your income, employment status and a credit check.

Your supplied supporting documentation is also check and assessed at this point.

If the credit assessor requires any additional information at this stage your mortgage professional will be notified and they will contact you to discuss.

Rough expected timeframe: Depending on the lender – anywhere between 24 hours and 30 days.

Step 4 – Conditional Approval

Your mortgage professional will receive all communication from the lender on your behalf.

This includes the notice of conditional approval.

Within the approval letter, the lender will outline any matters (conditions) that need to be addressed before an unconditional approval can be issued.

Your mortgage professional will advise you when they receive this approval.

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Step 5 – Valuation

Most commonly, the main condition of an approval is valuation of the security being provided.

Second most commonly, is the supply of any outstanding documents the lender may request.

The lender will order the valuation which could take up to 3-4 days to complete.

The valuation is often included in an application fee if there is one applicable.

Step 6 – Formal Approval

When your mortgage application is formally approved (aka unconditionally approved) that means all conditions and criteria required to assess the application have been lodged, checked, and approved.

It is only at this stage (formal approval) that the borrower is to be comfortable and confident that they can obtain their home loan mortgage.

If you are buying a property it is strongly advised that you DO NOT exchange contracts until your loan has been formally approved by the lender.

Your mortgage professional will be notified of this formal approval, you will then be notified by them.

A formal Letter of Offer will be issued by the Lender.

Mortgage documents will then be prepared and sent directly to the broker, applicant and/ or their solicitor, depending on what has been requested.

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Step 7 – Mortgage Documents

At this stage, documentation you should expect to receive from the lender includes; letter of offer; transfer document; terms and conditions of the loan + any other documents that are pertinent to the Lender’s own guidelines.

If a purchase is involved then it is highly recommended that you go through the paperwork with your conveyancer and for the conveyancer to liaise with the Lender to schedule a settlement date.

If the loan is just a refinance or a ‘top up’ it is recommended you sit down and go through these documents with your Mortgage Professional if you have opted not to use a conveyancer.

Step 8 – Settlement

After the mortgage documents are signed, witnessed and sent back to the lender, then settlement is arranged via your solicitor/conveyancer.

If there is not a necessity for a conveyancer then your mortgage professional will be involved to ensure settlement is completed.

Congratulations! You’ve bought your home

Each home buying journey is different.

Your Home Loan Mortgage Professional is there to guide you through these steps and help with anything unique to your situation.

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