It is vital to think about refinancing a home loan when you are not occupied in your personal life. The reason being, the time frame for approval on a refinance deal highly depends on the lenders. Different lenders have different ways of approving refinance home loans. While some may approve faster, others might dig deep into all statements you have provided and can even request for more documents than that asked at the start of the application. Therefore, it is a good idea to consult a home loan specialist to guide you through the list of lenders who provide the best home loan rates and faster approvals at that point.
A lot of times, as homeowners, we need faster approvals on refinancing and hence below are some tips to keep in mind that can accelerate approvals:
1. Credit rating & income
Lenders may spend less time digging into your bank statements provided you have a good credit rating. Therefore, focus on having a good credit rating 6 months prior to applying to refinance. Also, having a steady income and making repayments regularly paint a high profile about you in front of the lender.
2. Up-to-date documentation
The below documents are mandatory for processing refinance deals:
- Income documents
- Expense statements
- All assets and liabilities documents
- Current home loan documents including repayments, rate of interest, etc
- Most recent council of notice
- Council-approved plans if you are refinancing to renovate
- Building insurance policy
It isn’t that tedious to get faster approval if you are meeting the documentation requirements. As mentioned above, sometimes lenders will request additional information while assessing your application. This is hard to control and may lead to delays in your approval.
3. Brokers/home loan specialist
You can certainly check with your brokers about the lenders that provide faster approvals. We, as home loan specialists, have a clear idea about the average processing and approval times for lenders. We can suggest lenders that typically process and approve loan applications faster. However, it’s important to understand that lender delays can still happen regardless of how quickly you submit your application.