Do You Qualify For A Home Loan?

August 19, 2013
Catherine Rutherford

Do you qualify for a home loan? Much to some borrowers’ surprise, qualifying for a home loan isn’t always as hard as it may seem! With just a few simple steps, you could be on your way to home loan approval sooner than expected.

When assessing your ability to borrow, lenders will take into account a whole range of information about your financial history and current financial situation. This might include evidence of current income, living expenses, assets and liabilities such as credit card debt and other outstanding loans.

Borrowers are encouraged to prepare for home loan approval by checking out their own credit history for anything that might get in the way of the pre-approval. If there are blemishes in your credit history, try your best to resolve any problems with the relevant credit provider before applying for your loan.

Go through your past bank statements to make sure that they are free from suspicious withdrawals or transfers such as movements of large sums of money to or from your account. If you find this is the case for you, make sure you have evidence of the reason behind the transactions to help support your transactions.

Lenders will take your overall credit limit into account when assessing your ability to repay a loan. So try to reduce any excess debt that you might have from car and other personal loans, store cards, HECS/HELP fees, and so forth. This will allow lenders to look more favourably on your financial situation.

If you have evidence of a stable employment record and regular genuine savings, you should be on the right track to loan pre-approval. To learn more about your borrowing power based on your potential loan size, deposit amount, type of property and so forth, visit your local mortgage broker. This will help you get a better idea of how much you have in your wallet before you hit the pavement in search of your new home!

If you want to learn more about your home loan options, call Chris Stampoultzis and the team at Mortgage Choice Doncaster on 03 9858 4755 or email chris.stampoultzis@mortgagechoice.com.au

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