Hi all, just need an insight into home loan application process through a mortgage broker.
We were planning to buy a house through the first home buyer scheme with a 5% deposit in rural NSW. We are currently in the process of a pre approval through a local mortgage broker who has good reviews. We decided to put in a joint application hoping that it would make the process easier. We agreed to go through NAB as suggested by our mortgage broker who said they have are quick with the assessment and would get back to us in few days. We submitted the application for pre approval almost a month ago with whatever savings we have but everytime a document is submitted we get an email either requesting a clarification or new documents. The last one was about differences in PAYG summaries of my wife for the last two years although she only works casual and the other one was clarification with large transactions for a certain month but they were basically between two accounts within the same bank, which was primarily into the savings account. We have submitted quite a few of our payslips, account statements and all the other relevant documents whenever they requested.
I honestly thought the process would be much simpler with a mortgage broker and I don't know if the loan would even be approved at this stage.
We are now reconsidering whether to proceed anymore or wait until we have at least a 20% deposit in hand or find another mortgage broker.
Any suggestions will be much appreciated
[Resolved] First Home Buyer - Process Getting Too Complicated with Mortgage Broker
Last edited 06/10/2022 - 09:25 by 1 other user
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I'm confused how the mortgage broker is making things "difficult"? And how things would be easier without them.
Even if you have 20% deposit the bank is still going to want you to account for these discrepancies.@Quantumcat : My mortgage broker filled out all the applications, gathered all the documents and had me double check and simply sign all the papers…they even did this on a public holiday.
So you are incorrect, or you need a better mortgage broker…Same! I just have them all the documents and they did all the admin.
Sounds like you got a good one who went above and beyond! It isn't their job to do everything for you though. (Obviously it is in their interests as helping you secure the loan helps them get that trailing commission)
I think I may get OPs issue. I was also anxious because its such a thorough process for the "pre-approval". Typically a good mortgage broker will probably have a good idea if and how much you'll get pe-approval for that you figure it won't need this much info until the actual approval. But the process still feels like a LOT, they ask for a LOT of details and yeah a lot of checks on your pay and making sure they align etc.
I do wonder though how come its coming back often and it seems like its taking a while?, I think mine was a once off, so maybe yours is much more complicated due to the casual part of the work trying to add that in to increase the amount you can borrow?
But I will say that they do ask for heaps of information that it can feel antsy and I made a similar thread when I applied for pre-approval.
The broker however just takes your details, figures out whats the best potential bank to go to (based on interest rates/how much you want to borrow/etc) and then puts the application in for you from your details. The rest really comes from the bank.
FWIW I imagine the process is quite larger unless you specifically went to your own bank that you currently bank with.
If he had told me the casual job was going to be an issue, I was more than happy to proceed with the application under my name instead. I'm stuck and I don't think I will be able to get all the details. It really doesn't help when he said he has to go around NAB's process because he doesn't get when they ask for more info. I would still get a mortgage broker than apply through the bank directly
If he had told me the casual job was going to be an issue, I was more than happy to proceed with the application under my name instead.
I don't know if issue is the word, typically anyone can "borrow money from the bank" the question is "how much". The casual job likely means you can borrow more as it adds to it, but takes more time/scrutiny maybe then expected. In saying that, you're right this is a long time, mine took 7 days for Westpac once I provided everything.
It really doesn't help when he said he has to go around NAB's process because he doesn't get when they ask for more info.
That does sound troubling, if you think they're not right for you I definitely get it too. I see a lot of brokers get high ratings as they're great for getting a better interest rate a few years down the line making it cheaper for you. But some aren't so great at the process at the start/don't do it as often. I know I talked to 3 until I landed on one, and even then they weren't the best fit.
Brokers can be complete wankas that's why they don't work for a bank.
20 years ago Think it was Aussie home loans some idiot came around checked finances. I Had a car loan in bushiness maybe 20K outstanding. He's saying your income is this plus you have an outstanding 20K debit.
Couldn't work out my income wasn't part of the car or many other things and was trying to include them back into part of my expenses that had already been taken out to show my real income.
In other words he was double adding my cost of living twice from my after tax.
Ended up at CBA they new straight away what was going on financed me then offered more money 6 months after to buy an investment property.
Flick the broker and go direct to NAB they will soon sort you out.This ^
Go direct to the bank. It'll be faster and less stressful without the middle man broker.
I work for a bank. If they are taking a month and are still coming back for more info it could be
1. The broker does not know what they are doing
2. Your application is not a priority to them
3. NAB have a longer turn around time than they anticipatedIt is also possible the broker lied about your info and has been found out (using full time income instead of casual) and is now in a right mess.
I would let the broker know they have a deadline or you will go elsewhere.
Don't give up because of the difficulty you have already experienced, it will be the same whether you have 5% or 20% deposit. I was actually early to use the governments 5% deposit scheme when it was announced a few years ago, and can say the experience was stressful, but the deposit amount had no impact on our experience aside from the bank we chose to go with. Buying a house and securing a loan is just stressful AF.
We went with NAB, and IMO they are the best choice out of the ones that offer the 5% scheme service.
We didn't use a mortgage broker, and I'm glad we didn't. If we were to refinance or something now, yes I would use a mortgage broker, but for actually applying for the loan with the 5% deposit scheme, I think it might actually be harder and slower to use a broker. IMO just go to NAB directly with all your paper work, cut out this middle man, they'll just be slowing stuff down relaying messages / chinese whispers.
I sat with my NAB loan chick and we just nutted everything out in 1 long meeting. This was useful because she could give feedback in realtime about things a broker couldn't. EG, I had some gig economy income that was pretty substantial but was not able to include that due to banking requirements (you need to consistantly do it for 2 years for it to count, I had only been doing it 9 months). A mortgage broker typically won't know the specific requirements for each bank.Best of luck mate, it'll be stressful and hard, but worth it.
The mortgage broker helps you find a bank who will probably loan to you based on your circumstances and a loan product that meets your needs, they don't do the application for you.
It is much simpler in the fact that they have identified a bank for you, if you were on your own you would be doing a lot of ringing around and applications that end up getting denied. So you have a head start having used a mortgage broker. If you change your mind you'll only be starting the process all over again.