Did you see us on TV? - Click Here
The process of buying property is a mystery to many, so we have complied a few tips to help you on your journey to becoming a homeowner. You've saved for your deposit, you've got a budget in mind, and you've begun the house hunt... But how do you give yourself the best chance of being approved for a home loan?
Here a few basic steps to follow to ensure your journey to a home loan is as smooth as possible.
Your credit rating, or credit score, is one of the first things a lender will look at when conducting their credit check to decide whether you are eligible for a loan. You can build a good credit rating by paying bills and repayments consistently on time.
It is integral to be completely honest with your lender and in your application. Lenders have access to all of your credit history and all relevant information, and failing to disclose details could ultimately end up in you being declined due to dishonesty. They will find everything out anyway, so you may as well be upfront!
Lenders will look into your expenses to ensure that you can afford to make mortgage repayments each week, fortnight, or month. You will need to prove to a lender that you are capable of making these payments for the entirety of the loan.
While you might be tempted to apply through many lenders to better your chances, it is best not to overdo it. Lenders will be able to see how many applications you have entered on your credit report. In saying this, it is still important to compare a few lenders to get the best interest rates and fees you can. Just stick to a few lenders you have done some research on.
Lenders will be able to check on how many, if any, loans you currently have. If you have ongoing personal loans or credit card debt, consider paying these off before applying for a mortgage. Having to pay off loans and debt each month will mean less cash available to put on to your mortgage, and lenders will be on the lookout for this.
You will need to prove you have stable, ongoing employment in order to be successful in acquiring a home loan. Lenders will often prefer if applicants have been in their current job for over six months (excluding probation). If you have changed jobs recently, be prepared to prove stability with further job history ready to show your lender.
Beyond Debt is a trading name of DCS Group Aust Pty Ltd. Australian Credit License: 382607. RDAA Number: 1126. PO Box 3074 Newstead, QLD, 4006.
DCS Group operates under a Limited Liability scheme approved under Professional Standards Legislation
