By Matthew Andrews, Pivotal Financial

Obtaining a home loan is all about information and documentation.

To approve a loan, a lender or bank needs to assess your credit history, your equity position (assets and liabilities) and your servicing capacity (income and expenses). They do this with information and documentation. For example, you can prove your deposit by providing a bank statement showing the funds in your account and you can prove your income by providing a pay slip or tax return.

How long it takes a lender to assess your application will depend on several things:

• The simplicity or complexity of your situation
• How organized and complete your information is
• The lender’s process and handling of documentation (How quickly can they find things sent to them?)
• The lender’s approach to assessment (Once they’ve received the information and documents, are they doing manual, detail-oriented assessments or do they rely heavily on automation and technology for their decisions?)

It’s safe to say that processing times across the board have reduced as lenders and banks embrace more technology and automation.

The speed at which some loans can be approved is impressive – with some approved from the time of submission in under two hours!

A speedy result relies on spending hours preparing a quality application with complete documentation that is well-organized, through drawing on knowledge and experience.

This doesn’t mean that everyone is super quick! And it doesn’t mean that the super quick lender is the right fit for you. In all cases, we believe that it’s more important to get the right approval, rather than a quick decline.

Trying to get quality results in a compressed timeframe leads to stress on everyone. If you can, it’s best to reach out to your mortgage broker as early as possible so we can do a lot of the background work before you have a contract in place.

So, back to our question, how long does it really take to get a home loan?

Playing it safe, allow about four to six weeks from the time you submit an application to having the funds available. If you require funds sooner than that, we can still help! We just need to factor the timeframe into the lender selection in the first instance.

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