You may be surprised to learn that qualifying for a home loan isn’t always as hard as it may seem!
Lender’s policies are not all the same, so what may not qualify with one lender could be eligible with another. With just a few simple steps, you could be on your way to home loan approval sooner than expected.
When determining whether you are able to borrow funds, lenders will look at a whole range of information about your financial history and current financial situation. This will include evidence of current income, living expenses, assets and liabilities such as credit card debt and any other loans you may have.
Other things that the assessors will look at when reviewing the application include the borrower's credit history, current bank statements and overall repayments.
- Check your credit history.
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.
Make sure that they are free from suspicious withdrawals or transfers such as movements of large sums of money to or from your account, make sure you have evidence of the reason behind the transactions to help support your transactions.
- Determine/reduce your current repayments.
Lenders will review your overall credit limit when assessing your ability to repay a loan. 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.
Still sounds scary? Contact your Mortgage Choice Broker to learn more about your borrowing power based on your situation. We can 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!
To chat more about your home loan possibilities, contact Fi Manley (0421 360 205) or Steve Pratt (0427 390 929), at Mortgage Choice in Noarlunga, your local Mortgage Broker in the South.