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What Really Happens From Fact Find To Formal Loan Approval

A clear, step‑by‑step look at what your broker actually does from first fact find through to formal loan approval, and what you need to do each week to keep things moving.

24 July 2026Updated 8 Sept 2026Reviewed 8 Sept 20266 min read

Key Takeaway

From fact find to formal approval, a mortgage broker typically follows six steps: information gathering, pre‑assessment, lender selection, application lodgement, valuation, then credit decision. Around 70% of new Australian home loans now go through brokers, reflecting this structured process and complex lender rules. Borrowers who provide complete documents quickly can often move from first meeting to formal approval in 2–4 weeks. The key actionable insight is to treat the fact find like a tax return: accurate, complete information upfront avoids delays and declines.

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How ABN age can affect your chances with the banks

While you’re mapping the approval steps, this video explains how your ABN age can shape your home and business lending options.

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General information only, not personal advice. Your situation is assessed before any recommendation.

What Really Happens From Fact Find To Formal Loan Approval

This topic is covered in full on Tailored Loans Sydney

A clear, step‑by‑step look at what your broker actually does from first fact find through to formal loan approval, and what you need to do each week to keep things moving.

Read the full guide on tailoredloans.sydney

From fact find to formal approval, a good broker runs a tight six‑step process: gather your data, pre‑assess, choose a lender, lodge the application, get valuation done, then secure credit sign‑off. If you’re responsive and organised, this can take about two to four weeks, even for more complex deals.

Diagram of the mortgage broker process from fact find to formal approval. A clear workflow helps you see where your broker is up to at every stage.

Step 1: Fact find – the “tax return” for your loan

The fact find is the detailed questionnaire where you and your broker map your income, assets, debts, living costs and goals.

Treat it like a tax return: complete, accurate and consistent with your documents.

Most brokers will ask for:

  • ID – licence, passport, Medicare
  • Income – payslips, group certificates, employment contracts, tax returns (self‑employed)
  • Debts – credit cards, HECS/HELP, personal loans, leases
  • Assets – savings, super, properties, cars, shares
  • Living costs – usually grouped against the lender’s HEM benchmark

They’ll also capture your goals:

  • Property type and price range
  • Target timing (auction date, settlement deadline, refinance window)
  • Future plans – renovations, kids, business changes, investing

Your job this week:

  1. Fill in the fact find honestly – don’t round down debts or expenses.
  2. Send all requested documents in one go, as clear PDFs.
  3. Flag anything unusual – bonuses, upcoming maternity leave, business volatility.

This lets the broker test your scenario properly before anyone touches your credit file.

Step 2: Broker pre‑assessment and lender shortlist

Next, the broker runs your scenario through:

  • Servicing calculators (with at least a 3% APRA buffer over the actual rate)
  • LVR and LMI rules (e.g. 80% vs 90% vs 95% lending)
  • Income policies (overtime, commissions, self‑employed add‑backs)
  • Credit history tolerance

They’ll usually compare several lenders, balancing:

  • Indicative rates and fees (no one can promise the final rate yet)
  • Policy fit for your income type
  • How fast their credit team and valuers are actually moving

For more complex scenarios — self‑employed, borderline servicing, recent credit issues — this pre‑work is what turns a “probably no” into a safe, well‑structured yes, as covered in more depth in /insights/local-broker-turn-no-into-yes.

Your job this week:

  • Clarify priorities: absolute lowest rate, maximum borrowing, fastest approval, or structural flexibility (e.g. multiple splits, offset accounts).
  • Confirm what repayments you’re actually comfortable with, not just what a calculator says.

A good broker will recommend 1–2 lenders, explain the trade‑offs and get your sign‑off before moving on.

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Frequently asked questions

How long does it take to get from fact find to formal approval?▾
For most organised borrowers, moving from fact find to formal approval takes about two to four weeks. That assumes you return documents quickly, your scenario fits mainstream lender policy and there are no major valuation issues. Complex self‑employed or borderline deals can take longer, especially if more supporting evidence is needed.
Can my broker guarantee formal approval after pre‑approval?▾
No, no broker or lender can absolutely guarantee formal approval until full credit assessment and valuation are complete. Pre‑approval is always subject to conditions like satisfactory property valuation and updated financials. A strong fact find and careful lender choice make formal approval much more likely, but there is always some risk until the final sign‑off.
What happens if the valuation comes in low during the broker process?▾
If the valuation is lower than expected, your loan‑to‑value ratio may rise, which can mean higher LMI or a reduced loan amount. Your broker can sometimes challenge the valuation, order a second opinion with another lender, or restructure the loan with a higher deposit. Acting early and understanding your fall‑back options helps avoid last‑minute stress.

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