6 Guidelines for First-Time Home Loan Approval
The Paper Trail
The more information you can provide when applying for a mortgage, the higher your chances of getting your loan approved. Purchase a convenient file to house all of your documents, such as:
- Statements of all previous loans and credit cards
- Payslips – last 2 at least
- Most recent 2 income tax returns
- PAYG summaries
- Most recent personal bank statement
- Most recent credit card statement
- Anything else you think is relevant
Have Your Credit Report Up to Date
You must first make sure that your finances are in order. Sit down and evaluate your credit report, which contains information about all of your credit accounts (cards, loans, mobile phone plans, etc.) and your financial history.), and all their associated repayment histories. When you apply for a home loan, your lender will first take a look at these things.
If It’s Wrong – Dispute It
Consider speaking to a credit professional to help you dispute these issues as inaccurate information and discrepancies will harm your credit score and could result in the denial of your application.
If It’s Outstanding – Pay It Off
Mortgage lenders will evaluate your capacity to make timely debt payments. So, if you have any unfinished business, finish it as soon as you can. It is probably a good idea to wait at least 6 months before applying for a mortgage if you recently made a late payment or paid off any delinquencies for any reason.
Home Loan Deposit Size
Larger depositors are always given preference by lenders. They typically view loans for 80% of the value of the property as “safe.” Do not forget that if you are prepared to make a sizable down payment, they might be willing to deviate from their standard lending guidelines. You may also be exempt from the Lenders Mortgage Insurance (a one-time fee that can be quite strict when assessing your mortgage) if you borrow less than 80%.
Use a Mortgage Broker
A mortgage broker can help you get ready for your loan application so you have the best chance of getting approved. Mortgage brokers have access to a wide range of competitive variable, fixed rate, and split rate loans from a large panel of top lenders. By doing this, you can be sure that your mortgage broker will be able to find you the most affordable interest rates for your home loan.
