What Happens After You Apply for a Home Loan?

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Key Takeaways

When you apply for a home loan, you concentrate most on getting approved. You prepare all the documents and prove your creditworthiness to secure the home you want. But what happens after you submit your application? And what should you do after you get approved?

As a borrower, there are some key steps to take before you can hire movers and settle into your new home. These include signing documents and undergoing the settlement process. Here’s a short guide that outlines what happens after you apply for a home loan.

Getting Approved

After you apply for a home loan, the lender will assess your application to ensure you meet their eligibility and serviceability criteria. They will conduct a credit check and verify the documents you submitted. They will also arrange for a valuation of the property you intend to buy. 

If everything checks out, congratulations you’re approved!  The lender may give you a conditional or an unconditional approval. A conditional approval means your loan is approved subject to certain conditions.

An unconditional or full approval means that the lender has reviewed your application, completed the valuation and confirmed that you meet all their criteria for borrowing. Once you receive formal approval, you’ll start a process that includes signing documents, settlement, and post-settlement.

The Next Stages After Your Home Loan Approval

Here’s what to expect after applying and getting approved for a home loan by a lender:

Loan Offer

After receiving, assessing, and approving your home loan application, lenders will provide you with a loan offer document with specific conditions and a contract to sign. Carefully review the loan offer, which outlines important details such as the interest rate, fees, and repayment schedule. If you have a mortgage broker, they can help explain the terms of the contract to you.

Signing and Returning Documents

Once you have confirmed all contents of your loan offer, sign the document accordingly and send it back to your lender. At this point, you will also need to sign and return other home loan documents that will come with your loan contract, including the mortgage document and a direct debit authority form.


Nowadays, settlements in Australia happen via online settlement channel PEXA and not in person. During the settlement, your lender will finalise your loan and disburse the funds to the vendor. This stage finishes up all financial and legal loose ends and transfers property ownership from the vendor to you.  


At this stage, you can collect the keys from the real estate agent.  Having signed a direct debit authority form, repayments will be automatically debited from your nominated account – it’s important to ensure that your account has sufficient funds on every repayment date. 

Best Practices After Getting Approved

Getting approved brings you closer to buying your dream home. If you go ahead and make your purchase, here are some tips to avoid financial challenges while paying for your loan:

Keep a Good Credit Rating  

Watch your credit score while paying off your home loan because it can affect your chances of getting other loans or credit cards in the future. Your payment history is the most important factor in determining your credit score. Pay your monthly repayment on time by setting up automatic payments or reminders.

Manage and Reduce Your Debts

Make an effort to pay down any debts you have, especially high-interest ones like credit cards and personal loans. You can opt for debt consolidation to streamline your payments and make it easier to repay several loans in one go.

Get Your Home Loan Application Right with Loan Experts

Lodging a home loan application isn't always smooth sailing. With the help of our loan experts at Dark Horse Financial we can help match you with the best lender for your circumstances.

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