Home Loan Process Checklist

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1 Home Loan Process Checklist STEP 1 Mortgage broker receives all necessary information, documents and a signed application STEP 2 Home loan application is prepared and submitted to lender by mortgage broker. Mortgage broker informs you that your home loan application is submitted STEP 3 Lender conducts credit check and other inquiries STEP 4 Lender assesses application and provides conditional approval (assuming there are no issues/concerns) STEP 5 Mortgage broker informs you of conditional approval (or decline) of your home loan application. You may need to provide further information STEP 6 Valuer organises to inspect property, then writes and submits report STEP 7 Property valuation received/held. Mortgage broker informs you that a property valuation is held STEP 8 If mortgage insurance is not required: lender issues unconditional home loan approval and issues contracts. Mortgage broker informs you of unconditional approval or if mortgage insurance is required, formal sign-off is sought from mortgage insurer STEP 9 If relevant, mortgage insurer sign-off received and unconditional home loan approval issued. Mortgage broker informs you of unconditional home loan approval and you proceed to settlement

2 Document Checklist INCOME Three recent computerised payslips Letter from employer stating position, commencement date, if still on probation, gross income, year to date, regular overtime and allowances Copy of employment contract Last year s group certificate or tax return if you re self employed: Last 2-3 year s tax returns (if company/family trust applicable, you will require company tax returns, memorandum and articles of association, copy of trust or deed) Copy of tenancy agreement for all owned investment properties or a letter from a real estate office to confirm the estimated rental income ASSETS Copy of savings history (passbook, statements, certificates for six months) Copy of sale contract on existing home or settlement letter from your solicitor if the deposit is to come from the sale of an existing home Statutory declaration (if any part of the deposit is a gift), stating the amount of the gift and that it is non-repayable Rates notice on any existing owned properties Copy of Superannuation statements, share certificates etc. LIABILITIES Copy of loans statements for 12 months on any existing mortgages Copy of credit card and personal loans statements and statements from any other borrowings OTHER Copy of purchase contract Copy of plans, specifications and fixed price contract (construction/renovations) Cheque for establishment fees - if required PROOF OF IDENTITY Drivers Licence - 40 points Passport or birth certificate - 70 points If these documents cannot be located other acceptable documents can be used such as Medicare Card, Bank Statements, etc.

3 Moving Checklist Disconnect Utilities You should be disconnected from your utilities. Notify relevant services at least 48 hours in advance. You may be able to redirect these services to your new address, so its all ready when you arrive. Redirect Gas Electricity Water Telephone Bills Mail Magazine Subscriptions Internet Connection Phone Number (if applicable) Advise friends, business & associates of your new address Go through your address book and send out change of address cards. You can buy these from the post office or have them cheaply printed at your local instant printer. Alternatively, you can your new address to people. Friends Family Work Sporting Groups Doctor Dentist Banks Accountant / Solicitor Tax office Road Authority for Drivers Licence and Registration Credit cards Electoral commission Insurance Getting ready to move Get quotes from removalists and book the one most suited to your needs Arrange insurance for goods in transit (your removalist may cover this) Prepare floor plan of your new house and number rooms for boxes Pack jewellery and valuables and take them yourself or arrange a special carrier Pack fragile items yourself Mark each carton with the room number it s intended for Mark items to be handled with special care Defrost the fridge and freezer Throw out rubbish in sealed bags. Water the garden for one last time Don t forget the pets Plan ahead for your new home Prepare to have the carpets cleaned Prepare to clean cupboards and bathrooms Prepare for utilities to be connected Arrange house and contents insurance Final Check Turn off the water, gas, electricity Check all cupboards, storerooms, sheds and under the house Enjoy your new home! Lock up securely, leaving some ventilation Hand over keys to agent or new owner

4 Repayments Calculator Estimate your monthly home loan repayments* Amount 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% 5.50% 5.75% 6.00% $200K $898 $926 $955 $984 $1,013 $1,043 $1,074 $1,104 $1,136 $1,167 $1,199 $225K $1,010 $1,042 $1,074 $1,107 $1,140 $1,174 $1,208 $1,242 $1,278 $1,313 $1,349 $250K $1,123 $1,158 $1,194 $1,230 $1,267 $1,304 $1,342 $1,381 $1,419 $1,459 $1,499 $275K $1,235 $1,274 $1,313 $1,353 $1,393 $1,435 $1,476 $1,519 $1,561 $1,605 $1,649 $300K $1,347 $1,389 $1,432 $1,476 $1,520 $1,565 $1,610 $1,657 $1,703 $1,751 $1,799 $325K $1,459 $1,505 $1,552 $1,599 $1,647 $1,695 $1,745 $1,795 $1,845 $1,897 $1,949 $350K $1,572 $1,621 $1,671 $1,722 $1,773 $1,826 $1,879 $1,933 $1,987 $2,043 $2,098 $375K $1,684 $1,737 $1,790 $1,845 $1,900 $1,956 $2,013 $2,071 $2,129 $2,188 $2,248 $400K $1,796 $1,852 $1,910 $1,968 $2,027 $2,087 $2,147 $2,209 $2,271 $2,334 $2,398 $425K $1,908 $1,968 $2,029 $2,091 $2,153 $2,217 $2,281 $2,347 $2,413 $2,480 $2,548 $450K $2,021 $2,084 $2,148 $2,214 $2,280 $2,347 $2,416 $2,485 $2,555 $2,626 $2,698 $475K $2,133 $2,200 $2,268 $2,337 $2,407 $2,478 $2,550 $2,623 $2,697 $2,772 $2,848 $500K $2,245 $2,316 $2,387 $2,460 $2,533 $2,608 $2,684 $2,761 $2,839 $2,918 $2,998 $525K $2,357 $2,431 $2,506 $2,583 $2,660 $2,739 $2,818 $2,899 $2,981 $3,064 $3,148 $550K $2,470 $2,547 $2,626 $2,706 $2,787 $2,869 $2,953 $3,037 $3,123 $3,210 $3,298 $575K $2,582 $2,663 $2,745 $2,829 $2,913 $2,999 $3,087 $3,175 $3,265 $3,356 $3,447 $600K $2,694 $2,779 $2,864 $2,952 $3,040 $3,130 $3,221 $3,313 $3,407 $3,501 $3,597 $625K $2,807 $2,894 $2,984 $3,075 $3,167 $3,260 $3,355 $3,451 $3,549 $3,647 $3,747 $650K $2,919 $3,010 $3,103 $3,198 $3,293 $3,391 $3,489 $3,589 $3,691 $3,793 $3,897 $675K $3,031 $3,126 $3,223 $3,321 $3,420 $3,521 $3,624 $3,727 $3,833 $3,939 $4,047 $700K $3,143 $3,242 $3,342 $3,444 $3,547 $3,652 $3,758 $3,865 $3,975 $4,085 $4,197 $725K $3,256 $3,358 $3,461 $3,567 $3,673 $3,782 $3,892 $4,003 $4,116 $4,231 $4,347 $750K $3,368 $3,473 $3,581 $3,690 $3,800 $3,912 $4,026 $4,142 $4,258 $4,377 $4,497 $775K $3,480 $3,589 $3,700 $3,813 $3,927 $4,043 $4,160 $4,280 $4,400 $4,523 $4,647 $800K $3,592 $3,705 $3,819 $3,936 $4,053 $4,173 $4,295 $4,418 $4,542 $4,669 $4,796 $825K $3,705 $3,821 $3,939 $4,059 $4,180 $4,304 $4,429 $4,556 $4,684 $4,814 $4,946 $850 $3,817 $3,936 $4,058 $4,181 $4,307 $4,434 $4,563 $4,694 $4,826 $4,960 $5,096 $875K $3,929 $4,052 $4,177 $4,304 $4,433 $4,564 $4,697 $4,832 $4,968 $5,106 $5,246 $900K $4,041 $4,168 $4,297 $4,427 $4,560 $4,695 $4,831 $4,970 $5,110 $5,252 $5,396 $925K $4,154 $4,284 $4,416 $4,550 $4,687 $4,825 $4,966 $5,108 $5,252 $5,398 $5,546 $950K $4,266 $4,400 $4,535 $4,673 $4,814 $4,956 $5,100 $5,246 $5,394 $5,544 $5,696 $975K $4,378 $4,515 $4,655 $4,796 $4,940 $5,086 $5,234 $5,384 $5,536 $5,690 $5,846 $1M $4,490 $4,631 $4,774 $4,919 $5,067 $5,216 $5,368 $5,522 $5,678 $5,836 $5,996 $1.25M $5,613 $5,789 $5,968 $6,149 $6,334 $6,521 $6,710 $6,903 $7,097 $7,295 $7,494 $1.5M $6,736 $6,947 $7,161 $7,379 $7,600 $7,825 $8,052 $8,283 $8,517 $8,754 $8,993 $1.75M $7,858 $8,105 $8,355 $8,609 $8,867 $9,129 $9,394 $9,664 $9,936 $10,213 $10,492 $2M $8,981 $9,262 $9,548 $9,839 $10,134 $10,433 $10,736 $11,044 $11,356 $11,671 $11,991 *Repayments calculated on a monthly basis over 30 years. This information is intended for general reference only.

5 Budget Planner Plan to get you expenses under control by using this comprehensive budget. Convert all your income and expense details to monthly amounts. Section A Income after tax Your after tax income Partner/spouse after tax income Pension/benefit Family payment Child support received Board money received Investment (after tax) Other income (after tax) TOTAL INCOME FOR SECTION A Section B Expenses Housing Rent Personal Clothing haircuts 1st mortgage Grooming/cosmetics 2nd mortgage Entertainment Land rates Sport Water rates Club fees House and contents insurance Newspapers and magazines House repairs Holidays Strata levies Gifts Home contents replacements Pocket money children Education School fees Drinks alcoholic Uniforms Cigarettes/tobacco Self education Laundry/dry cleaning School excursions Gambling/other Tutoring/books Donations/other Sports/out of school activities DVDs/videos/movies Pre-school Postage/films Child minding Pool/gardening expenses

6 Budget Planner Section B Expenses Utilities Electricity Maintenance Children Gas Water Mobile phone Internet and cable TV Medical Health insurance Doctor Dentist Chemist Food Groceries Eye care and optometrist Lunches Specialists/alternative therapies Pet food Pet and vet Take away food/restaurants Other Superannuation Transport Petrol Life/term/income insurance Repairs Professional fees Registration Other expenditure Fines Savings Insurance Special projects License Fares TOTAL EXPENSES FOR SECTION B Section C Your loan expenses Credit cards Personal loans Car loans/hire purchase Store cards/accounts Finance companies Home loans Other debts TOTAL EXPENSES FOR SECTION C Your after tax income (from section A) Less your living expenses (from section B) Less your loan expenses (from section C) Net Result

7 Home Inspection Checklist Address Price estimate Selling agent Contact name Phone number Land House Size Size Construction - Roof No of Bedrooms Walls Water Pressure No. of Rooms No. of Bathrooms Sketch Floor Plan Exterior Poor Average Good Landscaping/garden Fencing Condition of exterior walls Condition of gutters/downpipes Poor Average Good Garage/undercover/off-street parking Security Privacy Condition of roof Condition of footings/timber stumps Exterior doors Termite damage Sub-floor ventilation Interior Condition of floors/floor coverings Ceilings - cracks/leaks Walls - cracks/leaks Condition of paint/wallpaper Doors condition/ease of use Poor Average Good Heating - central/fireplace Cooling Storage/cupboards Windows - condition/ease of use Light fittings/switches Poor Average Good

8 Home Inspection Checklist Bedrooms Main Adequate Size Powerpoints Sufficient Robe built-in/walk-in yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no overall rating Bathrooms Main 2 3 Number of bathrooms Conditions of tiles - cracks/grout Condition of walls - water damage, mould Plumbing/water pressure yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no yes / no overall rating Kitchen Poor Average Good Dishwasher/oven/cook top/rangehood Conditions of tiles - cracks/grout Cupboards Plumbing/water pressure Bench space overall rating Laundry Bench space Taps/basin Plumbing/water pressure Poor Average Good overall rating Location Poor Average Good Street traffic - light/heavy Public transport Distance to shops Distance to schools Distance to medical facilities Recreation (parks, beach, gym, sports) overall rating

9 6 Step Buyer Checklist Six step buyer checklist 1. How much can I borrow? 2. What are the costs? 3. Which loan is right for me? 4. Get pre-approval 5. Search for a property 6. The buying process 1 how much can I borrow? How much can I borrow is often referred to as your borrowing power, which is basically how much you can borrow to finance your house or property purchase. Your borrowing power is assessed on a number of points: your income your savings current financial commitment credit history living expenses guarantors 2 what are the costs? In order to determine how much you can borrow, you will need to factor in all the charges such as: deposit taxes stamp duty (mortgage and property purchase) legal costs insurance registration fees on a mortgage

10 6 Step Buyer Checklist 3 4 which loan is right for me There are heaps of loans available with different features and fees to be considered, such as home loan rates, mortgage offset, redraw and ongoing fees to name a few. Mortgage Providers actually search for and organise the most suitable loan for you and the best thing is we don t charge you a cent for this service! You need to consider a few things when deciding what loan to take, including: can I make additional repayments without being charged extra? can I make repayments via direct debit, ATMs, internet and phone banking services? can I have a mortgage offset facility which allows me to offset funds in an account against my home loan? can I redraw funds at any time, how do I do it, and is there a charge for it? will I be able to restructure my loan in the future? are there home loan fees? get a pre-approval Pre-approval is a term that means your loan has been approved in principle (given that you have met lending prerequisites). It involves completing a loan application with all the relevant supporting documents, such as pay slips, bank statements etc. From here, we work with you to complete the relevant paperwork to move the loan through to the approved status. A pre-approval gives you an idea of how much you will be able to borrow. Therefore, how much you can comfortably pay for your new property. 5 search for a property This is the exciting bit! By now, you will have no doubt started thinking about where you want to buy. With your pre-approval sorted, you now have a better idea of how much you can spend. When going to view properties, you should take with you our property inspection checklist so that you can compare each house you view on similar points. Make sure you re thorough when inspecting a house.

11 6 Step Buyer Checklist 6 Some things to compare when looking for your home include; Price averages for the area Growth rate for that area Proximity to public transport Proximity to shops, schools, major roads Are there any repairs needed? Number of rooms, bathrooms, toilets Heating/ Air Conditioning: gas or electric the buying process The buying process is the final and most important step to home ownership. This process can be broken into 4 separate stages: 1. Making an offer There are two different types of offers you can make: a) Auction if you are buying at an Auction, you are required to pay a deposit (usually 10% of the purchase price) immediately b) Private If you are buying privately, you are usually required to pay a holding deposit (can be anywhere between 0.25% and 10% of the purchase price) 2. Contract of sale The contract of sale (which is prepared by the vendor s legal representative or agent) outlines your offer, the date of settlement and any other conditions that must be met before the sale goes ahead It is best you discuss the Contract of Sale with your legal representative before you sign it. There are two kinds of offers unconditional and conditional. Unconditional offers This is an outright offer to purchase land or property. At this stage you should be absolutely certain that this is the land or property that you want and that you have access to finance for the purchase. Upon acceptance of your offer by the vendor, you are obliged (legally) to go through with the purchase.

12 6 Step Buyer Checklist Conditional offers are similar to unconditional offer, in the fact that it is also a legally binding contract (providing that all of your conditions are satisfied). The only way that the Conditional contract can be broken is if one or more of the conditions are not met. 3. Finalise loan Once you have pre-approval we can work your loan through to the finalised stage by completing all of the necessary paperwork and then on to settlement. 4. Settlement After the contract becomes unconditional and all documentation has been finalised with the lender (if applicable) your purchase will proceed to the settlement stage. You or your legal representative will book in a date for settlement and on that day you can pick up the keys to your new place! For any more information, or to request a quote please contact Mortgage Providers on