Home loan pre-approval - what are usual steps to apply?

MonkeyJai on 16/05/2020 - 19:35

Hi there, I want to understand more about the processes in getting home loan pre-approval.

A bit of background, I've been contacting couple of banks trying to work out my indicative borrowing powers (no broker involved, all directly contact with bank) and found that HSBC is offering best rate with the amount I needed.

So last Friday, I've decided to go with HSBC to get a pre-approval and sent all supporting documents (payslip, expense breakdown, proof of funds etc.). The Premier Relationship Manager looking after my case confirmed yesterday that all documents received and that an application form will be sent to me shortly.

My questions are below;
- What are the usual process after taking applicant's application form for pre-approval? Do bank just confirm in mail/email that pre-approval for my borrowing capacity is valid for certain period of time?
- Do bank still reject pre-approval or do bank just reduce my borrowing capacity?
- Anyone have experience with HSBC home loan? Are they decent in terms of time it takes to get pre-approved/actual loan approved?

Thanks in advance for answering the questions.

Financial

Comments

  • Pecan on 16/05/2020 - 20:15
    +2

    They will contact you when the outcome has been determined. You will be told what the conditions are of your preapproval including how much they will lend based on $x of deposit. Usually they are valid for 90 days. I don’t personally have experience with HSBC but your relationship manager can give you an indication of how long it will take, it all depends on how many other applications they are managing right now.

  • Jade81 on 17/05/2020 - 11:46
    +1

    The above comments correct, just remember even with preapproval it's still best to let a real estate agent know you have preapproval but any offer subject to loan approval …the loan is still subject to the banks valuation of the property, they don't often knock them back but I know of a couple.
    No info on hsbc sorry

  • khushi123 on 20/05/2020 - 11:10

    We got a pre-approval FROM CBA.cover letter says it's valid for 6 months. Took us 3 business days after initial meeting with lending specialist.

    No experience on hsbc sorry

  • MarsTitan on 20/05/2020 - 13:19

    HSBC is not a very helpful bank to deal with. They have become very strict and will go over your financials in extraordinary detail.

    They will be very conservative as well and may require LVR of above 20%.

  • Kinko82 on 23/05/2020 - 19:37

    When you asked those questions to the HSBC relationship manager - what did they tell you?

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