Getting your first home loan approved

HomeHome Loan ApprovedGetting your first home loan approved

Getting your first home loan approved

The great Australian dream is to own your own home, for most people without a large amount of money to use towards purchasing tfirst home buyerhe house outright, a home loan will be required to assist in buying that property. So you will need to make sure that you’ve got a very good chance of your home loan application being approved.

Buying your first home, could be one of the most expensive financial decisions you may have to make, so having an expert like a Mortgage Broker assisting you along the way making recommendations on what home loan suits your lifestyle and plans to help you find the right home loan, will not only help you get your home loan approved but also educate/guide you through the finance stage making this special time in your life stress free.

If you’re planning to purchase a property for the first time, and need a mortgage to acquire the property, it’s important you put forward an impeccable application that will have a high chance of approval from the lender.

Things you should do:

1. Set yourself up with a regular savings plan
Set aside an amount of money every week or month, this is a great way to demonstrate you’re financially responsible to manage a home loan repayment. When you’re borrowing more than 80 – 85 per cent of the purchase and cost of the property, most lenders will need to complete a minimum of three months account statement verification, checking your savings patterns to establish five per cent genuine savings (based on the property purchase price and other costs).

2. Know your credit rating
All borrowers, property investors and first home buyers should regularly check their credit report. This report will give you an overall financial report of your credit enquiries and if you have any defaults or negative repayment history recorded. By checking your credit report before applying for any loan will make you aware before the lender assesses it. If there is anything on it that isn’t correct, you have a chance to contact the company that recorded it to get it corrected.

3. Employment stability prior to applying for a home loan
Stable employment is important when it comes to getting a loan, as lenders will take this into consideration when assessing your loan application, looking at the length of your current employment, with a preference that the borrower has been in their current place of employment for at least six months and not on a probationary period.

In saying that, if you have changed jobs recently. The lender will have to carefully look at your employment history, what you did immediately prior to the new job. If being in the same industry for a couple of years, then this could be used to satisfy the lenders employment policy requirement. But be prepared to provide additional documents to support this information.

4. Good account conduct and repayment history
Having a well maintained transaction account with no overdrawing fee charges, and keeping up to date on repayments for all your existing liabilities and commitments- including car loans, credit cards and all your other monthly bill payments like mobile phone, electricity bills, internet bills etc.

5. Full disclosure
It’s extremely important you disclose all your assets and liabilities to your mortgage broker, when requesting for a home loan. Why this is very important is that if you didn’t disclose all your liabilities and during the process of assessment, the lenders uncovers any other liability that was not listed on the loan application, the loan could potentially be declined due to non-disclosure.
Being upfront about any other issues would help save time and effort, ensuring that your Mortgage Broker recommends the right home loan solution to you and a smooth application process.

6. Check your borrowing capacity
Before applying for a home loan, you want to check with your Mortgage Broker what your borrowing capacity is and use that figure provided by your Mortgage Broker as a guide. There is no point lodging an application with a lender when you don’t know your borrowing capacity, as you face the risk of your loan being declined.

Applications for home loans are subject to the Bank’s normal credit policy guidelines before approval. So get in contact with your Solution Home Loans Mortgage Broker for help in getting your home loan approved. Full terms and conditions will be included in the loan offer. Fees and charges may apply.

The information contained within this page is general in nature. It serves as a guide only and does not take into account your personal financial situation. Before you act on this information you should seek independent financial advice.

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