You don’t need luck on your side to ensure a smooth loan approval

March 11, 2015
Shae Aiello

Wondering how you can ensure a smooth home loan approval?

Well, success relies on borrowers of all types ticking all the right boxes. 

There are a range of competitive home loan deals available in today’s mortgage market but potential borrowers may miss out on these great offers if their loan approval is knocked back by the lender or unnecessarily delayed. 

It’s important to know what lenders will be looking for when deciding to loan money for you to purchase, renovate, or for other purposes. With over 28 years of finance experience, mortgage broker Steve Sims can help you make sure you tick all the right boxes!

Lenders look for evidence that a borrower is a good saver or has built equity, has a healthy credit record, steady employment and manageable levels of debt.

Working with a professional mortgage broker like Steve Sims in the loan approval process may help. He can work with you to complete the home loan application, prompt you to supply the required documentation and submit the application on your behalf. His team will then follow up the application, whilst keeping you informed every step of the way to settlement.

To put you on the road to a smooth loan approval process here is a five step checklist of things for you to consider when applying for a home loan:

  1. Steady employment and regular savings – Lenders want to see a steady employment history and evidence of regular savings. For existing borrowers, they look for regular loan repayments. Some lenders consider rental payments as savings evidence, but there may be conditions attached, so do your research.

  2. Clean your credit – Check whether you have multiple enquiries or any defaults in your credit history, and if so, try to resolve them with the relevant credit provider before you apply for a home loan and if need be, provide an explanation to your lender. You can order a copy of your credit file from suppliers such as

  3. Satisfactory statements – Your recent bank statements should be free from any suspicious withdrawals or transfers such as movements of sizeable sums of money into or from your accounts. If this does occur, include an explanation for the transaction.

  4. Document your debt – Lenders will require you to list your current financial commitments, such as rent, personal loans, credit and store cards, HECS debt, child maintenance etc. The amount owed on your store card and credit cards won’t be the key factor for lenders, but when assessing your ability to repay the loan, they will consider the overall credit limit. Remember to have these records on hand.

  5. Know your limits- For those looking to purchase property, there may be borrowing limitations based on your deposit amount and/or the property’s location, size and type. Steve and his team can help you research the mortgage market before applying for a loan.

For assistance in obtaining finance, speak to the team at Mortgage Choice servicing the Perth CBD, Claremont and West Perth areas (plus surrounding suburbs). Our mortgage broker Steve Sims can meet with you to discuss your credit rating and how it affects your prospective lending.

And, as a Mortgage Choice broker, Steve gets paid the same rate regardless of which home loan you choose from our wide choice of lenders. To get expert home loan advice at no cost to you, call Steve Sims on 0433 124 081 or today!


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