If you make an offer on a house, before you arrange your finance always make sure you put a clause in the offer "subject to satisfactory finance approval". Generally you should allow 5-10 days for this clause to be satisfied.

The main aspects of an application that lenders consider are as follows:

The level of equity the borrower is contributing.
This is referred to as the Loan to Value Ratio (LVR). It is simply the percentage of the property value being borrowed. The kinds of supplementary information that will need to be provided may include proof of existing equity (mortgage statements and property valuation), proof of deposit saved, and the Sale and Purchase agreement.

The ability of the borrower to repay the loan.
This is referred to as the Debt Servicing Ratio (DSR). Calculations need to be made on the affordability of the loan repayments based on the borrower's income and lifestyle expenses. The kinds of supplementary information that will need to be provided may include proof of income, disclosure of family situation (number of dependents etc.), details of other loans and/or fixed commitments including credit cards and hire purchases.

The creditworthiness and character of the borrower.
It can be difficult to negotiate a strong lending deal if there is a history of failing to repay other loans. Lenders will check with a credit company such as Veda Advantage and require satisfactory explanations of any adverse information received. A prospective lender is also interested in how the borrower conducts their bank accounts, so past bank statements are usually required. The lender will also need to verify the borrower, so suitable identification will need to be provided.