Home loan application process explained

Are you preparing to buy your first home or investment property?

It’s an exciting time and nothing compares to the feeling of holding the keys to your very own property in your hand. If you’re new to purchasing property, here’s how the home loan application process works.

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Understand your borrowing capacity

When it comes to purchasing a home or investment property, you need to first get a clear picture of your borrowing capacity and budget. How much can you afford to pay for the property? What amounts can you reasonably cover? Having a budget will help you narrow down your property search and avoid spending excessively. Inquire with us for an overview of your borrowing capacity.

Choose a lender

Next, it’s time to examine the options available and understand the different lenders. The most effective way to achieve this is to have us compare the market for you. Your 1st Street Mortgage Broker will be able to determine your financial situation and goals before suggesting an appropriate home loan.

Get pre-approved

Once you’ve selected a lender, your 1st Street Mortgage Broker can start the process of pre-approval on your finance.

This is when a lender decides, in principle, to lend you a specific amount of money. It’s also referred to as ‘approval in principle’ or ‘conditional approval’. You will still need full approval down the road, but obtaining pre-approved allows you to bid or make an offer on a property with confidence.

Arrange the required documentation

You will need to provide a variety of documentation to support your pre-approval application.

Requirements can vary from lender to lender, but usually speaking, they’ll want to check your:

  • Proof of identity
  • Proof of income and employment
  • Credit score
  • Deposit and savings history
  • Expenses
  • Assets and liabilities

Your 1st Street Mortgage Broker can guide you through the paperwork and ensure nothing is missed.

Review the pre-approval offer

If the lender determines you’re a appropriate applicant for a loan, they will issue you with a pre-approval letter.

Remember that pre-approvals are not a guarantee that you will get a home loan. You still need to meet the requirements required by the lender.

You shouldn’t have to pay for Pre-approval. There is no obligation to acquire a full home loan with that lender.

Pre-approvals are usually valid for three months.

Find a property and make an offer

After pre-approval comes the fun part – house hunting. Once you find the right property, it’s time to make an offer.

You’ll need to decide if you should stay with the lender that gave you pre-approval or shop around for another home loan.

Complete a full mortgage application

The last step is to complete the full home loan application for unconditional approval.

If you choose to go through the same lender that granted you pre-approval, most of the documentation will likely have already been completed. Your 1st Street Mortgage Broker will walk you through any other requirements needed.

As part of your application, your lender will likely get an independent valuation of the property. This helps them determine the risk associated with lending you the money.

If all goes smoothly and your mortgage application is approved, the lender will send you an unconditional loan approval letter. It is advisable to have your solicitor or conveyancer review everything to ensure it is in order before you sign the loan documents.


Lastly, it’s time for settlement. At this point, the lender will verify that your documents are in place and advance the home loan.

Your legal and financial representatives will meet with the seller’s representatives to exchange documents and arrange the transfer of title. Stamp duty is typically paid at the same time as the settlement.

Then the property is all yours!

Ready to buy?

As a first-time buyer, getting your head around the home loan application process can be overwhelming. That’s where your 1st Street Mortgage Broker comes in.

Mortgage brokers may take the stress out of applying for a home loan. We have access to a broad range of lenders and understand which home loans may be suitable for your specific financial circumstances and goals.

Let’s talk about your property purchasing plans. Get in touch with us today.

Our service is completely


Yes, that’s right. You pay zero, zip, nada.

1st Street’s premium service comes at no cost to you! 1st Street is paid by the lender when your loan settles, however, this will not affect your interest rate or loan fees! It is often more cost-effective for a mortgage broker to process a loan rather than the lenders processing it themselves in-house. In fact, we often find that we can save you money by negotiating on your behalf.

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your numbers

Use our online calculators to work out how much you can borrow, loan repayments, stamp duty and lots more.

View calculators

With 40+ lenders to choose from, the options are never ending!

A word from our satisfied customers

Maxine Zhong
Maxine Zhong
19 October 2023
Amanda has been such an incredible support throughout our very first time going through the home loan process. Her thoughtfulness to regularly check in to make sure all our questions were answered and that all our documents were in place helped to make the whole daunting process feel seamless and easy. I could not recommend her enough - she made sure to keep us informed every step of the way and made sure all necessary documents/processes were completed well ahead of time so we never had to worry about missing any steps. She went well above and beyond her role, and I know we will definitely be coming back to her in the future, as well as recommending her to all of our networks! Thank you again, Amanda!
Mark Nesbitt
Mark Nesbitt
11 October 2023
Greg and the team provide an outstanding service. Highly recommended
Christine Tran
Christine Tran
23 September 2023
Yuval handled my first ever home loan, he did such an amazing job I asked to him to refinance for me 2 years later. Yuval made everything very easy for me, and will give his best recommendation as if it was his own. Would always recommend Yuval :)
David Petrini
David Petrini
25 August 2023
Yuval Bloomfield was an absolute delight to work with. He made it extremely easy for my clients to discuss about their financial situation. With Yuval's strong connections he was able to get the loan my clients wanted in very quick time. Will definitely refer Yuval again.
Sophie Linehan
Sophie Linehan
24 August 2023
Greg and the team at 1st Street were fantastic all the way through the process of getting our financing sorted and buying a new home. They not only secured us the most competitive mortgage in the market but they also gave advice on a number of mortgage-adjacent questions that came up along the way. Their responsive and thoughtful guidance helped make the nail-biting process clear and calm. We would definitely recommend their services.
Gabrielle Scott-Jones
Gabrielle Scott-Jones
18 August 2023
Greg and his team gave me exceptional advice and support. They were timely and detailed in their responses and dealt patiently with me as a first home buyer and all of my questions. The lender at the bank commented on how well I was being looked after compared with other brokers in the market. I’d highly recommend 1st Street to anyone, including friends and family.
Eli Simic
Eli Simic
15 August 2023
Great communication and fast service
Richard Kuipers
Richard Kuipers
11 August 2023
Jeremy and his team are superb. Negotiated the best deal for us and were an absolure pleasure to work with. Highly recommended, you can't do any better in my opinion.
Jordan Rivkin
Jordan Rivkin
1 August 2023
The team at 1st Street truly are professionals. I can't recommend Jeremy highly enough, he is extremely competent and just a great guy. You're in safe hands with 1st Street!
Yossi Bengida
Yossi Bengida
23 July 2023
Another amazing job by David and Bree. Always available for our questions, helpful and just 10/10 Seriously good work !! See you on the next one :) Yossi and liz