Understanding Home Loan Approval Timelines: What to Expect
Applying for a home loan is an exciting step, but the waiting period for approval can feel daunting. Borrowers often ask, “How long will it take to hear back from the lender?” While there isn’t a universal answer, submitting a well-prepared application can help speed up the process.
What Happens After You Submit Your Home Loan Application?
Once your loan application is lodged, your lender will assess several factors before granting conditional approval. This includes evaluating your financial situation and conducting a property valuation.
The Role of Property Valuation in Home Loan Approval
A valuation determines the property’s market value, ensuring it meets the lender’s criteria. A pre-arranged valuation can significantly reduce waiting time.
“For a straightforward application, it typically takes 48 hours to receive final approval. However, more complex cases may take longer,” explains a finance broker.
Several factors influence the approval timeframe, ranging from two days to two weeks, depending on the intricacy of your financial profile.
Key Factors Affecting Loan Approval Time
1. Financial Assessment and Credit Review
Lenders will evaluate your income, expenses, and liabilities to determine if you can afford the loan. Providing accurate financial details upfront helps avoid delays.
“The credit review can involve back-and-forth communication between the borrower, broker, and lender. The more complete and transparent the information, the smoother the process,” the broker advises.
2. Importance of Full Disclosure
Being upfront about your financial history prevents unnecessary delays.
“Non-disclosure of liabilities or negative credit history is a major red flag. Transparency is key to getting approved,” says the broker.
3. Working with a Mortgage Broker
The home loan application process can be complex, but working with an experienced broker simplifies it. A reputable broker can guide you through every step, ensuring your documents are complete and correctly formatted.
What Happens Next?
After submitting your application, your finance broker will keep you updated on the progress and notify you of the outcome. If approved, you’ll receive a formal letter of approval from your lender, outlining the next steps.
Find the Right Home Loan Solution
Choosing the right loan can feel overwhelming, but our team at CBM Mortgages is here to help. Whether you’re a first-time homebuyer or looking to refinance, we offer expert guidance to streamline the process.
You can also download our Home Buying guide click here or if you are a first home buyer go to our dedicated First Home Buyers page here
Or for more information on First Home Buyer benefits you may be entitled to read our blog page here
For information on mortgage repayments speak to us or use our mortgage repayment calculators here
Read our blog page on putting in an offer subject to finance
Written by Craig McDonald 08/06/2025
