February 24, 2014
Some borrowers may be surprised that 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 borrowing capacity, 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.
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.
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.
Lenders will check 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 this is the case for you, make sure you have evidence of the reason behind the transactions to help support your transactions.
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 feel free to call me on 07 5444 6007