The following was published in the Leader Newspaper, October, 2013. I hope you can get something from it.
Want to be on your way to home loan approval sooner than expected? Local Mortgage Choice franchise owner, Glen Voss offers these tips to help you be in the best position possible to gain home loan approval:
1. Set yourself a good savings plan by putting aside the difference between your rent/board and the mortgage repayment you’ll soon be committed to. This will help you get used to the financial commitment of a home loan.
2. If you are expecting to receive a monetary gift from your parents or an inheritance in the lead up to purchasing your property, keep in mind that while the funds will boost your deposit size, they will not be included as genuine savings (funds saved regularly over of a period of three to six months) when the lender assesses your ability to repay your home loan.
3. Once you have 5% or more of the estimated purchase price (your deposit) in savings, consider clearing any excess debt that you might have from a car loan and other personal loans, store cards, HECS/HELP fees, and so forth. Banks and other lenders will look more favourably on your financial situation if you head into home loan approval with a clean slate.
4. Lenders want to see a steady recent employment record that shows you are receiving regular income. If you recently changed positions within a company due to a promotion or received a pay rise, or changed jobs multiple times in a short period of time but they are all connected by industry, be sure to explain this in the home loan application.
5. Lenders will require you to list your current financial commitments, such as rent, car and personal loans, credit and store cards, HELP debt, child maintenance, etc. Have your records on hand. Keep in mind the amount owed on your store and credit cards will not be the key factor for lenders.
Contact Glen Voss from Mortgage Choice in Hawthorn for help with securing a home loan on 0406 046 660, or visit www.mortgagechoice.com.au/glen.voss.