Getting your home loan approved is not as easy as lenders adverts may lead you to believe. With the economic troubles that Australia has experienced in the recent past, lenders are stricter and looking more keenly at loan applications. Being ill prepared can cause you a lot of heartache. So why not educate yourself and think like a lender so as to be well prepared and present a perfect and complete package that will boost your chances of having your mortgage approved.
So What Exactly Do Lenders Look Out For And How Can You Prepare Yourself?
- 1. Understanding Your Credit History
Before you even embark on a journey of applying for a home loan, you need to have a better understanding of your credit history and score. If you are planning to apply for a home loan, it’s important to get a copy of your credit history a few weeks earlier. This gives you time to go through it, make any corrections and if possible boost your score before visiting the lender.
- 2. Knowing Your Preferences
Using online home loan calculators before heading out to meet a specific lender is key to understanding the market competition and who is offering what. Knowing the terms you can reasonably afford and the repayment terms will help you sieve through the numerous home loans available in the market. Working with a smaller list that you meet their criteria increases your chances of being approved. And only apply for loans you know you can comfortably make repayments without hurting your budget.
- 3. Make A Checklist
Once you have identified a preferred lender and you receive a list of their expectations, it’s important to create your own check list of the required documentation for the loan application. Incomplete documentation can lead to loan denial. Take your time in gathering all the documents from your employer, creditors and other financial resources before heading back to submit your loan application.
- 4. Don’t Quit Your Job
Proving that you are in a position to make consistent repayments is crucial to having your home loan approved. No matter how much you detest your job, don’t quit while processing your mortgage because chances of losing out on a great deal is one of the consequences you may have to deal with.
Don’t get discouraged if your home loan application is not approved at your first attempt. Instead let it motivate you to get your finances and credit in order for your next attempt.