Navigating the Home Loan Process: What to Expect and How to Prepare
Applying for a home loan can often feel complex and time-consuming, with many borrowers expecting a seamless experience. However, the reality is that securing finance involves multiple steps, various professionals, and potential delays. In this blog, Aaron Christie-David, Founder of Atelier Wealth, and Client Services Manager, Kelsey Drake, discuss what happens behind the scenes of a loan application, why delays occur, and how clients can best prepare for a smoother experience. Watch the full episode here.
Understanding the Loan Application Process
At Atelier Wealth, we believe in setting clear expectations from the outset. The home loan process involves brokers, lenders, credit assessors, and legal professionals—all working together to achieve the best outcome. While we work hard to streamline the process, delays can happen due to lender turnaround times, additional document requests, and human oversight within the banks.
As Aaron puts it, “We can’t guarantee a flawless experience, but we can help our clients prepare so they know what to expect.”
Common Causes of Loan Processing Delays
Every application is unique, but some of the most common reasons for delays include:
- Document Updates: Banks require the most up-to-date financial documents. Even if you provided payslips two weeks ago, the bank may request updated versions.
- Lender Turnaround Times: Some banks take three business days to assess a loan, while others take a week or longer—especially when they’ve recently dropped their rates and are experiencing high application volumes.
- Valuation Delays: If a property requires a valuation, access must be arranged, which can take time if tenants or owners are unavailable.
- Errors in Loan Documents: Sometimes approval letters or formal loan documents contain errors, requiring corrections that delay the process.
- Human Assessment: Loan assessors manually review applications, and two different assessors from the same bank may interpret the same information differently.
Understanding these potential hurdles can help borrowers approach the loan process with more confidence and less frustration.
How to Ensure a Smoother Loan Experience
To help make your loan application as seamless as possible, we recommend the following steps:
1. Get Pre-Approved Before House Hunting
One of the most common mistakes buyers make is finding a property before securing a pre-approval. Without pre-approval, you risk unnecessary stress and tight deadlines when you finally find a property you love.
“If you’re working with a buyer’s agent and they don’t require you to be pre-approved before searching for properties, that’s a red flag,” says Kelsey.
2. Be Organised and Responsive
The loan process involves ongoing communication between clients, brokers, and lenders. Borrowers who are proactive in providing documents and responding to requests quickly will experience fewer roadblocks.
“The more organised and prepared you are, the less stress you’ll have,” Kelsey advises.
3. Allow Extra Time
Many buyers underestimate how long the loan process takes. Between lender assessments, document requests, and external factors such as property valuations, unexpected delays can happen. Planning ahead and allowing for extra time can help reduce stress.
4. Understand the Role of Different Professionals
A successful property purchase involves multiple professionals, including:
- Mortgage Brokers: Structure the loan strategy and liaise with lenders.
- Buyer’s Agents: Assist with sourcing and negotiating properties.
- Solicitors/Conveyancers: Handle legal documentation and settlement.
- Bank Assessors: Review applications and approve loans.
Recognising each person’s role can help you set realistic expectations and avoid frustration.
5. Be Prepared for Loan Document Signing
Once your loan is approved, you will receive formal loan documents to sign. Some lenders require independent legal advice, particularly for guarantor loans or trust purchases. Knowing this in advance helps prevent last-minute complications.
Finalising Your Home Loan: Settlement
After signing loan documents, the final step is settlement. This is when the bank releases funds, and ownership of the property is officially transferred. However, even at this stage, potential issues can arise, such as:
- Missing or incorrect loan documents
- Delays in booking settlement
- Offset accounts not being linked correctly
To ensure a smooth transition, we recommend double-checking account details and ensuring your offset account is correctly linked to your home loan.
Ready to Secure Your Home Loan? Let’s Chat
At Atelier Wealth, we are committed to guiding you through every step of the loan process. Whether you’re a first-time buyer, seasoned investor, or refinancing your home loan, our expert team is here to help you navigate the process with confidence.
If you’re ready to take the next step, contact us today to discuss your home loan strategy. Let’s make your property goals a reality!
