March 03, 2015
Regardless of whether you are looking to buy an investment property or an owner occupied property, it is important to present yourself to your potential lender as a good, reliable, low-risk borrower.
Thankfully, doing so isn’t difficult.
In fact, there are just four easy steps to follow in order to highlight yourself as a good borrower to your future lender, including:
Step 1: Look at your credit history
Have you ever missed any bill payments? If so, it can affect your credit history which can then adversely impact your chances of securing finance. Of course, it doesn’t have to. By obtaining a copy of your credit record, you can see if you have any black marks against your name and then work with the various lenders to sort them out.
Step 2: Get your documents ready
Having all your documents in order before applying for a loan will not only show your lender that you are serious about obtaining finance, but it will also help the whole process to run far more smoothly. As a potential borrower, you will need to have the following documents at the ready when applying for finance:
- Photo ID
- Details of Income – including two recent, consecutive pay slips as well as details of any other income you may receive including rental income, government benefits etc
- Details of assets – including any investments, superannuation funds, vehicles, savings/government accounts etc
- Other expenses – including what you currently pay in rent as well as any other living expenses you may have
- Details of liabilities – including any credit cards or other loans you may currently have
Step 3: Use a professional to get the right outcome the first time
No lender wants to see that you have already applied for 15 different loans with 15 different banks. So, when you are applying for a home loan, make sure you get it right the first time and apply for a loan with a lender you can successfully obtain finance through. As your local mortgage broker, I can help you to identify which product is right for you and then help you to apply for and secure the right loan.
Step 4: Build a good history of savings
If you can show a lender that you have a good savings history and have built up a strong deposit over a period of time, they are more likely to look upon you and your desire for a home loan favorably.
By following these steps, you should be able to apply for and obtain finance without concern. Of course, buying a home and applying for finance is one the biggest financial commitments you can make, so make sure you deal with a professional who can step you through the process and help you to make the right decisions for your needs.
For further information, and to put yourself in the best position with valuable information and guidance, contact a trusted consultant from Mortgage Choice on 07 3286 7711.