Sat. Jul 13th, 2024
Mortgage Broker’s Checklist on Loan
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Imagine this: you are walking in the bank to enquire about the home loan documents for the very first time. You return back home only to find that you are missing out on a few important documents. You request your lender to suggest any alternatives but it turns out that banks follow a strict lending policy.

This is one of the common pain points that many homeowners face and eventually struggle to get a home loan approval. Because of these reasons, finding Axon mortgage brokers who can step ahead to guide you through the documentation process and eliminate the complexity of applying for a mortgage is valuable.

The Role of a Mortgage Broker

A mortgage broker is a middleman who communicates with both the borrower and their network of lenders. They help borrowers identify the best type of home loans, negotiate loan interest rates, repayment terms, and assist in the preparation and submission of loan applications.

One of the key services they offer is to collect, complete and look after the authenticity of the documents to provide a smooth and timely loan approval process.

The Comprehensive Loan Application Checklist

Here is a list of documents and information you need to present to a mortgage broker in Sydney for a home loan application. If you are finding difficulty in understanding or obtaining any of the below documents, a broker can make the necessary arrangements with their expert approach and reliable networking skills.

1. Personal Identities

  • Australian Government-issued photo ID (e.g., driver’s licence, passport)
  • Social Security number, Tax File Number in Australia

2. Income Verification Proof

 Salaried Employees:

  • Recent pay slips (covering at least the last 30 days)
  • W-2 forms from the past two years or salary statements
  • Employment appointment letter

  Self-Employed:

  • Profit and loss statements
  • Balance sheets
  • Tax returns from the past two years
  • Income statements or 1099 forms, if applicable

3. Tax Documents

  • Federal tax returns from the past two years
  • Recent bank statements (at least the last two months)

4. Credit Information

  • Authorisation to obtain a credit report
  • Explanations for any negative items on the credit report

5. Asset Verification

  • Statements for savings, checking, and investment accounts (last two months)
  • Retirement accounts documentation
  • Proof of any other sources of income (e.g., rental income)

6. Debt Information

  • Documents of remaining debts, including credit cards, student loans, auto loans, and other mortgages
  • Monthly statements for all outstanding debts

7. Property Information

  • Purchase agreement or sales contract for the property
  • Proof of earnest money deposit
  • Information on the property’s insurance (if already in place)

8. Additional Documents

  • Divorce decrees or separation agreements if applicable
  • Documentation of any legal judgments or bankruptcies

How Mortgage Brokers in Perth Assist with the Checklist

1. Personalised Guidance

Every borrower’s situation is unique. While banks can provide you with a standard list of documents for a successful loan application, mortgage brokers provide personalised guidance.

They help borrowers understand exactly which documents they will need only after learning about their income level, income sources, assets and liabilities. This also depends on the type of loan you are applying for obtaining a mortgage.

2. Organisation and Preparation

Mortgage brokers help borrowers stay organised. They often provide checklists and tools to track which documents have been collected and which are still pending. Having a checklist in advance can prevent you from missing out on getting all the documents which can otherwise  reject your loan applications.

3. Document Review

Before submission, a mortgage broker in Sydney reviews all documents to ensure they are complete and accurate. They check for common errors, such as outdated information, missing signatures, or incorrect calculations. This thorough review helps you to catch potential issues early and reduce the chances of delays during the underwriting process.

4. Communication with Lenders

Mortgage brokers are the initial point of contact between the borrower and the lender. They are experts in communicating about the problems in the loan application process that you may face.

Additionally, they work with you to provide additional information or documents to the lender to make your experience smoother. With the broker’s assistance, you can easily meet the lending conditions and move forward without unnecessary delays.

5. Explaining Complex Requirements

Mortgage applications often involve complex legal and financial requirements. A mortgage broker in Sydney often breaks down complex information in plain language so that you can understand all the requirements and loan approval process without relying only on the banks.

6. Continuous Support

From the initial application to the final approval, mortgage brokers provide continuous support. They answer questions, provide updates on the status of the application, and offer reassurance during what can be a stressful time. This ongoing support helps borrowers feel more confident and informed throughout the process.

Benefits of Having a Mortgage Broker

1. Time Savings

Gathering all the necessary documentation for a mortgage application can be time-consuming. Mortgage brokers help streamline this process, saving borrowers valuable time and effort.

2. Increased Approval Chances

By ensuring that all documents are accurate and complete, mortgage brokers increase the chances of loan approval. Lenders are more likely to approve applications that are well-organised and error-free.

3. Stress Reduction

The mortgage application process can be stressful, especially for first-time homebuyers. Mortgage brokers help alleviate this stress by providing expert guidance and support every step of the way.

4. Access to Multiple Lenders

Mortgage brokers have access to a wide network of lenders, which means they can help borrowers find the best loan products and terms. This access increases the chances of securing a favourable mortgage.

5. Expert Negotiation

Mortgage brokers are skilled negotiators who can advocate on behalf of borrowers to secure better terms and lower interest rates. This expertise can result in significant savings over the life of the loan.

Final Words

Understanding the mortgage application process can be challenging, but with the help of a knowledgeable mortgage broker, it becomes much more manageable. By providing a comprehensive loan application checklist and guiding borrowers through each step, mortgage brokers in Perth help in simplifying the process and increase the chances of a successful loan approval.

Whether you are a first-time homebuyer or looking to refinance, partnering with a mortgage broker team from Axton Finance can make all the difference in achieving your homeownership goals.

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