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Once your loan application is completed it will be submitted to the assessment department of your chosen lender.

STEP 1. Assessment
It is important to note that lenders have different lending guidelines, and different ways of determining whether you can afford the loan. Some lenders do not require valuations on property purchases, but all lenders require valuations on security property that is already owned by the applicants.

STEP 2. Income confirmation and credit check
While the valuation is taking place, completion of your assessment continues. Confirmation of your income from your employer, as well as a credit reference check (CRA) will be carried out. The CRA report will show your borrowing history for the past five years. You will need to clarify any defaults or bad debts. Any outstanding defaults or bad debts will need to be cleared completely before the application can proceed.

STEP 3. Security assessment
Valuations, if required, will now be completed and returned to the lender. The lender will assess the valuation and determine if the property is suitable for mortgage lending purposes.

STEP 4. Mortgage Insurance assessment
Mortgage Insurance protects the lender from losses resulting from the sale of the property due to default by the borrower. Mortgage Insurance DOES NOT protect the borrower. Mortgage Insurance is usually required when the value of the loan amount opposed to the value of the property is higher than 75%. Once mortgage insurers have accepted the application, the loan will proceed to final approval by the lender. Upon final unconditional approval, your Letter of Offer outlining the terms and conditions of your loan will be issued and forwarded.

STEP 5. The settlement process
You will receive your Letter of Offer within five days of your loan approval. You will need to make sure that this document is correct and that you understand all the terms and conditions. If you have any questions, you should contact us so that we can explain the details for you. Once you have read it and are certain it is correct, you will need to sign it and return it to us. It is imperative that the signed Letter of Offer is returned promptly so the settlement process can continue. The first payment on your loan is usually required one month after settlement date. Remember, we are available to assist you at any stage during the approval and settlement process.

Contact Fusion Finance today for more information on any of our loan products. We look forward to the opportunity to help you.