About Home Loans
Whether you are a First Home Buyer, needing a bigger home for a growing family, purchasing an investment property or simply refinancing, Just Imagine Finance are here to help you find the best finance solutions for your home buying needs.
We work with you to find the most competitive finance solutions and loan structure to suit your personal needs. Just Imagine Finance are a Blue Mountains based mortgage broker providing finance solutions to people Australia-wide since 2003. Please contact us to discover how we can work with you to find the right home loan solution for you.
How the Mortgage
We will meet the you at a place which is the most convenient to you. This could be after hours in your residence; at your work site
during your lunch break or even at a cafe! During the interview process, we will discuss the home loans (with the necessary features and benefits that you require) that suit your situation. We will go through and provide you with numerous options that are available and then go through each one with you to see which is the most appropriate that will suit your needs and wants. Once you are happy with your selection of the loan product, the loan process will commence.
Completion of a Loan Application
Together we will now complete the lender’s application that you have chosen and will go through what is required in relation to all the necessary documentation that is to be included so they can lodge your home loan application. We will also go through your income situation to see if you will be able to service the loan that you are applying for. It would depend on your situation as to what documents would be required. Upon receiving all the relevant documentation we will submit it to the chosen lender.
Lender Assessing Application
The lender will assess your application to determine whether you meet their serviceability and credit requirements. This process includes confirmation of your income, employment, and a credit reference check. Your supporting documentation is also assessed at this time. If the credit assessor requires any additional information they will send through a request to us and we will contact you to provide the information required.
Obtaining a decision – Conditional Approval
We will receive a communication from the lender in the form of a conditional approval on your behalf. The lender will also outline any matters that need to be addressed before they can issue unconditional approval. We will advise you upon receipt of this communication. Just remember, Conditional Approval does not mean you will get the loan, there are still a few hoops to jump through.
Valuation of Security being provided
The most common condition of approval is the valuation of the security being provided. The lender will order the valuation and this could take up to 3-4 days to complete – it will all depend if the valuer can obtain access to the security property being provided. This is a very important step in the mortgage process and cooperation is utmost to ensure that the loan application is not delayed due to the fact that the valuer cannot access the property security. If there is an application fee applicable the cost of the valuation is usually included in this fee.
Lender's Mortgage Insurance (LMI)
This step will only be necessary if you have less than a 20% deposit or insufficient equity in an existing property. Lenders Mortgage Insurance (LMI) is one of the most popular ways to achieve the dream of home ownership sooner for borrowers who do not have a large deposit. Many lending institutions require borrowers to contribute a 20% deposit before they will agree to provide a loan. This is largely to protect against the risk associated with providing the borrower with the loan in the event that they default. By using LMI, lenders are able to pass on this risk to a mortgage insurer, which in turn enables them to offer the same loan amount but with less of a deposit. LMI should not be mistaken for Mortgage Protection Insurance, which covers your mortgage in the event of death, sickness, unemployment, or disability. LMI protects lenders against a loss should a borrower default on their home loan. If the security property is required to be sold as a result of the default, the net proceeds of the sale may not always cover the full balance outstanding on the loan. Should this be the case, the lender is entitled to make an insurance claim to the Mortgage Insurer for the reimbursement of any shortfall, calculated in accordance with the terms of the insurance policy. It is a once-off premium and in a lot of cases can be capitalised with the loan.
When a home loan application is formally approved (some lenders use the terminology of unconditionally approved) it means that all conditions and criteria required to assess a loan application have been supplied, assessed, and approved. It is only when a home loan application is formally approved that the borrower can feel comfortable that they can obtain a home loan. If you are buying a property it is advisable not to exchange contracts until such time that your loan has been formally approved. This will be communicated to us and we will notify you immediately of the decision. A formal Letter of Offer will then be issued by the lender. Mortgage documents will be prepared and will be sent directly to the applicant/s or the applicant/s solicitor if that was requested in the loan application.
Now that the formal offer has been provided, mortgage documentation is prepared by the lender. These include the letter of offer; transfer document; terms and conditions of the loan you have chosen and any other documentation that is pertinent to the lender’s own guidelines. If a purchase is involved then it is highly recommended that you should sit down with your solicitor/conveyancer to go through the paperwork and it will be the solicitor/conveyancer who will then liaise with the lender to schedule a settlement date. If it is for a refinance or a ‘top up’ then it is recommended you sit down and go through these documents with us.
With the new liabilities that come with owning property, it is important to consider or review your insurance requirements to ensure you are appropropriately covered. There are main four types of insurance you should consider:
• Home insurance
• Contents insurance
• Life insurance
• Income protection
You may need to start your insurance coverage prior to settlement. We will talk to you about these requirements at your interview or you can contact us anytime to discuss your requirements.
After the mortgage documents are signed, witnessed, and sent back to the lender, then settlement is arranged via your solicitor/conveyancer or if there is not a necessity for a solicitor/conveyance then we will be involved to ensure settlement is completed. The first repayment on your loan will usually be required one month after the settlement date.
First Home Loan
Entering the property market can be hard. Specifically for first home buyer – it can appear quite daunting. Thankfully there are several government incentives and benefits readily available to supply a tiny bit of an assisting hand.
First Home Saver Accounts (FHSA) are designed to urge individuals looking to buy their first the home of save a down payment.
The First Home Savers Account is an account which supplies tax obligation breaks and government contributions. Even if home ownership seems from your reach today, call us and permit’s make a strategy that will certainly transform your home ownership dreams into a future fact. All of it beginnings with a strong cost savings strategy.
Each state supplies stamp duty relief for first home buyers this comfort varies between states and territories.
Call us today to discover exactly what Stamp Duty incentives you’re entitled to as a first home buyer.
The First Home Owners Grant is a Federal campaign to aid you financially when you buy your first home.
If you have actually not formerly gotten or possessed a residential property and are an Australian Resident over 18 years of age, you might be eligible for this government grant. Added grants are available in some states and territories. Incentives do alter periodically, call us and we’ll endeavour to obtain each of the incentives you are entitled to. You might be shocked how much you could save.
Frequently Asked Questions
How much do I need for a deposit?
There are many options available in relation to how much you will need to come up with as a deposit. Depending on your situation it could vary from 5%-20% – even if you’ve just starting wondering whether home ownership is in your realms of possiblity, contact us for a quick chat about your situation. A simple chat will put you on the right path to achieve your home ownership dreams.
How much can I borrow?
Prior to purchasing a property, it is always essential to get a concept of how much you need to borrow.
How much you could borrow will certainly rely on numerous factors including:
- Your income.
- What you are buying (home or investment).
- Eligibility for First Home Owner Grant.
- What deposit is called for?
- Various other loan repayments and commitments.
A vital element to consider is just how comfortable you are financially to repay the suggested loan. It is important that you do not over-stretch yourself, it is finest if you sit down and exercise a budget and recognise how much you have actually left over to pay back a loan conveniently. You need to likewise factor in the rate of interest motions as this will impact your repayment quantity.
What are all the costs?
This is a government cost that is usually the biggest expense outside the purchase price of the property. Stamp duty varies between the states and territories. A great website is available for guidance on what the approximate stamp duty cost would be in your relevant state: www.stampdutycalculator.com.au
Loan setup up costs
This includes establishment fees and will vary depending on the lender and the loan product chosen. It is important to note that you may also require Lender’s Mortgage Insurance (LMI) depending on your deposit size.
Conveyancing is the process of which a property’s ownership is transferred from the current owner (the vendor) to the buyer. A conveyancer is a legal representative that specialises in this field. Either a conveyancer or solicitor will review your Contract of Sale and ensure appropriate checks are conducted on the property with local government agencies.
It is always recommended that prior to purchasing a property, you hire professionals to inspect the property for structural defects, concerns, pest infestations, or anything that could potentially cause damage to your property.