Applying for a home loan can make anyone anxious, and you’d no doubt want to get the process over with as quickly as possible. While there are a few things that can speed up home loan approval, it ultimately boils down to the lender’s timeline for processing your application. Over the years, lenders have begun adopting more digital measures. This means you no longer need to meet the lender in person to apply for a home loan. But your application still needs to be vetted by the lender, which can take a few days or a few weeks.
Does a quick home loan pre-approval help your home loan get approved faster?
One option that not all lenders offer is getting a home loan pre-approval. If your lender offers it, you may apply for it either over the phone or by submitting an online form. This pre-approval is often conditional. Unless you can meet the lender’s conditions, your home loan may not be approved. You’ll also probably find that this option is best suited if you have a steady income that’s not likely to decrease anytime soon. If you have a good credit score and positive credit history, you’ll likely get a pre-approval faster. The lender won’t need much information from you and will view your good history positively.
You need to watch out for lenders offering instant home loan approval online or quick and easy home loans and the level of scrutiny they put on your application. You could end up getting only conditional approval with a whole host of conditions, after very little scrutiny, not even a credit check. Conditional approval with minimal scrutiny usually means that the loan amount offered to you could change significantly once the lender reviews your credit report. For this reason, you should be careful when selecting a lender, and you may benefit from consulting a mortgage broker for advice.
Can I get a same-day home loan approval?
Any lender offering you a same-day home loan approval is usually talking about a pre-approval or conditional approval. This is because getting a home loan approved can take a few weeks or even longer because of the lender’s checks.
Even a pre-approval timeline is not fixed and varies depending on the lender and what checks they do. You may be able to get a quick home loan pre-approval by ensuring you have the necessary information at the ready. This includes information regarding your earnings, other debts, and available savings along with the documents to prove the same. Consider requesting a free copy of your credit report when preparing to apply for a home loan. This can tell you if there are any issues you need to sort out that may delay a home loan approval.
You can also look for a lender offering quicker home loan approval for borrowers meeting specific conditions. For instance, individual borrowers buying a home they plan to live in may find it somewhat easier to apply for a home loan, with lenders requiring fewer documents. Similarly, suppose you’re buying a home in an established community where house prices have stabilised. In that case, the lender can complete their home valuation sooner, and approve your home loan faster.
On your part, you can make it easier for both you and the lender by preparing a checklist of the home loan application requirements, which will probably include:
- Proof of identity
- Proof of Australian citizenship or permanent residency
- Proof of income, with income tax returns and assessment forms preferred
- Proof of savings, with bank account statements preferred
- Details of the home you’re planning to buy and its location