What is the Refinancing Process?
Once you’ve determined your needs and done your research, including speaking to a broker, beginning to refinance will be straightforward.
1. The Application
Your broker will evaluate your circumstances and help you submit your application. You’ll need to provide identification documentation, proof of income (such as pay slips) and list your assets and liabilities. If you’re staying with your existing lender, you may not need to provide as much information.
2. Getting a Valuation
Lenders will often require a valuation on your home to determine how much you can borrow. This bank valuation generally requires an inspection of the property by a licensed valuer. Remember to prepare for the valuation, ensuring your property is presented in its best light to gain an accurate valuation price. Tidy the garden, reduce clutter in the house and finish those small maintenance jobs you’ve been putting off.
3. Receiving approval
Once your lender is completely satisfied, full loan approval is granted. In many cases you’ll receive an approval letter with a copy of the loan contract to review, sign and return to the lender. Your funds will usually be cleared once all signed documentation is reviewed. Your lender will then arrange settlement of your existing loan and establishment of your new one.
While refinancing can save you money, it may not be the right move for everyone. Take care and get advice on whether it’s the best route for you. Before taking any action, talk to us today, as we can help you select a suitable loan product for your needs and circumstances.