1
Have a stable employment history
One of the main things lenders look for when approving a home loan is the consistency of employment. Each lender has slightly different requirements, however, if you can demonstrate that you have been in the same role, in the same industry for a long period of time, your chances of having your home loan approved are very good.
2
Minimise your debt
Try to keep any existing liabilities such as credit cards, personal loans and store cards to a minimum, with a clean repayment history. This is important because lenders will conduct credit checks. Minimising your monthly liabilities increases your borrowing capacity.
3
Establish a strong savings and repayment history
Lenders will want to see that you can save money and pay your existing commitments. Having a strong savings and repayment history will increase your chances of having your loan application approved.
4
Get your documentation together
Lenders will expect you to provide documentation to support your loan application which includes establishing your identity and financial situation. Identification documents include;
- Your driver’s licence
- Current passport, birth certificate or citizenship certificate
- If your documents are still in your maiden name, provide a copy of your marriage certificate
Evidence of your financial situation should include your most recent 2 payslips, and latest ATO notice of assessment or PAYG summary. Also required will be your last 3 months bank statements, latest rates notice, letter of employment, rental income statements, personal or business tax returns, and proof of share dividends or interest earned.
5
Have a clear understanding of your goal
Obviously, your goal is to purchase a property, but think of this purchase as far as down the road as possible. What are your short and long-term goals?
Will you be making renovations in the future? Then you may need a loan with flexible terms. Do you think you might sell the property after 3 years? You’ll need to take this into consideration if you are looking at getting a fixed rate mortgage.
Ask questions. Prepare a list of queries about the structure of the loan, how it works, whether a new product will do the same things as the previous one. Clarify the terms and conditions that you are not sure of. Find out all your options—your mortgage adviser’s knowledge and experience can help you make an informed decision.
If you have a clear understanding of your goal, it will be easier to determine the most suitable product and the right strategy for you.
6
Be open and honest
If you don’t say it, your broker won’t know it until your application is processed. Some people think they’ll be better off hiding or evading uncomfortable facts. It might be convenient to forget about the default years back or not to mention a HECS or HELP debt. If anything, not mentioning these things can hinder the mortgage approval process.
Everything is like to come out in the credit process. To get you a suitable loan, you need to give a comprehensive picture of your situation as possible. So even if you think it’s the wrong answer, say it anyway. Let your mortgage specialist decide.
It takes teamwork to get that home loan you always wanted. Let iShare help you streamline the process and find the ideal solution.
