I work full time and my wife works part time.I'm thinking of buying a small house and I got around 20% of deposite .Just wondering when people go to a bank and apply for a homeloan how long does it take?Do they approve or decline you at the same time on the appointment day you met or do they take time to process the application say 1 or 2 weeks?Thanks
For us we were able to get a go/no-go more-or-less on the first appointment (and that was a mortgage manager calling around to our house). They were very good. We did have a bigger than normal deposit (35%) and they approved us for more than we wanted to pay anyway.
From memory they had to go and do a couple of checks but they were routine. More time was spent finding the place/organising the conditions we placed.
Edit: From memory they gave us some sort of certificate/document indicating that the bank was willing to loan us such-and-such amount on that first appointment.
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i got one last year took over 1 week as they need all your finance tranactions for the past 3 years and companys like G.E dont work fast at providing copys of statments. But once they have all the data its about 4 working days.
Banks are currently wanting to lend, so aren't as strict as they have been . However this could change in the next week if the USA doesn't work out a solution for it's debt problems, which could signal another financial crisis. So I would be quick and get a good deal now, while interest rates are so cheap.
We recently got our mortgage pre-approved by using a mortgage manager. First manager took 2 days, second one over a week. We also spoke directly with Westpac who said it would take 2 days.
I'd recommend even if ASB are willing to lend to you that you speak with a mortgage manager and look further into your options. These services are generally free (mike pero, mortgage express etc) and they will compare a number of lenders and get you the best deal. Our manager was able to get us approved with a bank we hadn't thought to borrow from and with a better rate than others offered.
Some questions you should ask: - What is max value they will lend? - If the deposit will be less than 20% of that what is the low equity premium? - What reports will they require (RV, Builders, Lim, etc)? - What paperwork will be required (bank statements, proof of savings history, pay slips, out standing debt inc student loans and also a full budget)? - Will they require mortgage insurance? - How long will pre-approval last and will they require all banking to be done through them?
I have signed up with SBS within the last week. Basically you fill out a pre-application form and they can approve you up to a certain amount. When you buy the house (Both are consenting in the signing of the sales and purchase agreement) and you have finance as a condition (I had 5 days) the bank will approve this within the 5 days.
Once I gave them this information i found out the next day officially and that day informally how much i could borrow.
For my pre approval i needed; -ID -Proof of income (letter from employer confirming pay,last 3 payslips, 3 years annual income if seasonal worker) -Other income i.e Working for Families, WINZ, ACC or IRD -Student loan balances -6 months of bank statements -6 months of hire purchase or any other liabilities -Confirmation of deposit by showing 6 months showing savings history -Copy of sale and purchase agreement (if applicable) -Valuation
Hope this helps. Its good to have all this information when you go and see the bank.