One of the key components to a successful refinance is to do your research. This is where your Loan Company Mortgage Broker will first be able to assist – we will do the research for you!
We will complete a needs analysis to identify your current financial situation, and look at your current home loan versus what your property is worth. At this stage we will typically order a valuation, which is free of charge due to our ability to leverage off our lender network and success in the industry. This will help you identify how much equity you have in your property. We will then look at what you are currently paying versus what you would pay if you switched lenders (or refinanced with the same lender at a lower rate).
Once you have had your initial meeting, your Mortgage Broker will provide you with a shortlist of lenders to choose from.
Our brokers will help you compare all the options, investigate what refinance rebates the banks are offering, and they will be able to recommend the best lender that suits your needs based on your personal circumstances. We may also have loan options that may not be available to you if you were to apply directly with a bank on your own.
When you have decided on a recommended product, your Loan Company broker will organise the loan application for you. We will collect all the required documentation and present it to the lender for full assessment.
Some of the paperwork required will include evidence of your current incomes and expenses – this includes pay slips, bank statements, details about any investments and a thorough outline of any debts that you currently have. The broker will liaise with the lender and follow the application through until formal approval.
Formal (or Unconditional) Approval is when every condition has been met and the bank has approved your loan. Loan documents and mortgages will be sent out to you along with a discharge authority for your existing mortgage. We will be able to assist you with the completion of this paperwork.
Once all the documentation has been returned to the lender, the bank’s solicitors will liaise with each other, and arrange the discharge of your current loan and the commencement of the new loan.
This is a time to celebrate your new loan, as well as the money you will be saving on the reduced interest rate or better package!
