There's no straightforward answer to the question "how long will it take to get my loan approved". Every application is unique, so the time between your first contact with your bank or broker and approval can never be predetermined. There are, however, some things you can do to help hurry your application along.
A best case scenario for loan approval is usually two or three days. When the client’s lending position is fairly straightforward in terms of employment, asset and liability position, along with a lower LVR, it's more likely to be a quick assessment. If there is some complexity in employment status, property type, or loan structure this will often cause time frames to increase. Also, if the lender has a promotion or particularly good offers on the market this can mean they're busy and therefore slower. We are also seeing lenders ask for additional information more frequently in recent times, and this creates a to and fro which can extend approval time.
Disclose all information
To reduce the likelihood of back and forth requests, which can delay your application, ensure your lender has a thorough understanding of you as an applicant including appropriate identification of all borrowers. Provide all the supporting and necessary documents upfront to your broker, and convey as much detail as possible in relation to your requirements and objectives and have good, current information on your financial position. The broker will need to not only have your full financial details but will also need to take reasonable steps to verify it.
Skip the valuation queue
Not all applications require a valuation, depending on the property and lending institution, and forgoing this step can save a considerable amount of time. You can also save time by having a valuation completed prior to your application, as long as it’s accepted by your chosen lender – but check with us first.
To ensure your application avoids any unnecessary delays, speak to us.