10 easy steps to applying for home loan
Tips & Tricks
The process of applying for a home loan can be daunting, but it must not be. Follow our 10 easy steps to apply for home loans successfully.
Step 1: Meet with a BuildME mortgage adviser
Your BuildME mortgage advisor will discuss your needs and help you select the most suitable features and home loan rates during the consultation process. Read more here about your first meeting with a consultant. The loan application process starts when the right loan is selected.
Most mortgage applications will follow the same general process, from the initial interview to full consent. This process could possibly take a few days to a few weeks, depending on your tricky situation, but as a guideline, you should allow around 14 days for full approval and another 2 to 3 weeks for settlement.
Step 2: The loan application process
Your mortgage advisor on the BuildME will ensure that you have all the documents necessary to apply for a home credit and lodge it with your selected lender.
Documents may include:
- Certificate of Passport/Visa/Citizenship
- License Drivers
- Certificate of marriage
- Certificate of birth
- Two of your most recent country lips
- Copy of your employee's employment contract and letter
- IRB's most recent tax statement (Inland Revenue Business).
- If self-employed, full tax returns for the last two years
- WINZ (New Zealand Work and Income) Statements
- Evidence of current rental income
- Evidence of suggested rental income
- Most recent savings account statement
- Share certificates copy, etc.
- A copy of a sales contract on your applicant's existing home or settlement letter, if it proceeds from the selling of a current home
- Statutory declaration if a part of the deposit is a gift which states that it is not repayable
- Notice of rates for all existing properties
- Most recent credit card statements, personal loans, leases, etc.
- Copying 6-month loan statements on existing mortgages
- Copy of the sales agreement for the purchased property
- Certificate of Home Insurance for all properties owned
- Copying plans, specifications, and fixed pricing contracts for any building
- Check for establishment fees if necessary
Step 3: Evaluation
The lender will evaluate your application to see if you meet their serviceability requirements. This process includes your income and employment confirmation and a credit reference check. Your supporting documents are also currently being assessed.
Step 4: Conditional approval
Your BuildME Mortgage Adviser will receive conditional approval on your behalf, also known as pre-approval. The lender will also outline any issues to be tackled before unconditional approval can be obtained.
Conditional approval means that you are sure of how much you can spend and what your reimbursements are. With tentative approval, you can make an offer quickly when you find your dream home
Step 5: Security evaluation (Valuation reports)
The borrower may require a valuation on the purchased property during the security assessment. Assessments are at your own cost - your BuildME mortgage specialist can arrange an appraisal on your behalf.
Step 6: Mortgage Insurance Lenders
If necessary, your lender will now submit a BuildME insurance application.
Step 7: Full approval
For your dream home, you made an offer - congratulations! Once your home loan has been unconditionally approved, the lender will issue a formal letter of offer. Once the offer is accepted, you are legally committed to the sale.
Step 8: Settlement of loans
The credit documentation is issued to your solicitor/transmitter, who then contacts the lender on the settlement date. The first refund of your loan usually takes one month after the date of settlement.
Step 9: Insurance
You should consider two types of insurance:
- Protection of life/income
- Insurance for home and content
Before settlement, you may have to start your insurance cover.
Step 10: Move-in
Congratulations! You bought your house – now is the time to move in and settle down.