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Our Loan Guide

The Loan Process

Over the years, we have improved the industry standard for loan processing procedures to help property owners. And we have gone further. Here’s our step-by-step guide so you know exactly what happens and when it happens.

Step 1: Loan Lodgment

After a phone or face-to-face consultation with a Liquidity Finance mortgage broker, you decide to apply for a particular mortgage and provide us with the necessary supporting documents. 

We then put together your loan application and lodge it with the selected lender.

We make every attempt to lodge your application the day the information is received and we notify you as soon as the loan is lodged. 

To ensure a stress-free process, we wait until all documents are received before submitting your loan.

Step 2:Conditional approval

The lender will go through its normal checks on routine details such as your credit history and income. Once it is happy with your application, it will issue a conditional approval. 

The approval may be subject to one or more conditions, such as the valuation of the property you want to buy. Many lenders have a 3-5 day turnaround for a conditional approval. Liquidity Finance will notify you about the approval and any conditions. Some input may be required from you to meet the conditions so your help here is critical to processing your application as quickly as possible. 

Step 3: Valuation ordered

When conditional approval is given, the lender will issue a valuation order to a panel valuer to have the details and value of your property confirmed to ensure it meets the lending criteria.

Lenders may instruct valuers to do either a drive-by valuation or a full valuation depending on the application. It normally takes four working days for the valuation to be returned to the lender. 

In the case of a full valuation, valuers may have difficulty accessing the real estate agent or tenants to gain access to the property and this may cause a delay. To speed things up, some lenders order the valuation before conditional approval.

Liquidity Finance will notify you when your valuation is ordered. 

Because valuation is such a critical step for our clients, Liquidity Finance has taken a proactive approach with some lenders to be able to order the valuation up front.

Step 4: Valuation returned

The valuation report is returned to the lender normally within 4-5 days. If the valuation is as expected, the loan will automatically go to the next step.

If the valuation is lower or higher than expected, the lender usually wants the borrower to adjust the loan amount. In the case of a higher amount, a serviceability test may need to be rerun to ensure the borrower can still service the debt. In the case of a lower amount, the borrower may need to reduce the loan amount to fit the buyer’s borrowing capacity. 

Most lenders ignore the valuation if it's higher than the contract price. For property investors who bought under the market value this can be very frustrating.

Step 5: Unconditional Approval

Once all conditions are met and the borrowers and lender are happy with the valuation, the lender can issue unconditional approval for the loan.

Unconditional approval is usually given on the same day the valuation is determined if there are no outstanding conditions. Liquidity Finance will notify you and your solicitor of the approval on the same day. 

For clients who are refinancing, we will lodge your discharge-authority request with your existing lender as soon as unconditional approval is confirmed because they may need 10-15 working days to discharge your mortgage.

Step 6: Documentation Issued

Once your application is unconditionally approved, the lender will issue:

  • Loan contract
  • Mortgage document
  • Terms & conditions
  • Disbursement authority
  • Direct debit forms
  • Statutory declaration if required

Liquidity Finance will notify you that the documents have been issued. If you don't receive them within 2 days, it is important you tell us so we can follow them up.

Step 7: Documentation Returned

We are happy to go through these documents with you in our office if needed. Once you are happy with the documents, you sign and return them all to the lender as soon as possible. Its settlement team will do a final check before it can book settlement and errors will delay the settlement.

Step 8: Settlement Booked

The lender will book a time to settle the transaction with your solicitor or conveyancer if you are buying, or with your existing lender’s discharge department if you are refinancing. You may be asked to get a bank cheque for settlement if additional cash is required to complete the transaction.

Step 9: Settlement

If everything has gone smoothly up to this point, there shouldn't be any problems with the settlement.

Step 10: Post-Settlement

Ensure that all accounts are set up correctly. We will make sure this happens by touching base before and after your first repayment. If you have any questions just give us a call.