The Aussie dream to buy your own home, well, getting a home loan is part of the process…
Here is a checklist of tips to help you prepare:
- Show your ability to repay… is a key requirement for lenders. Lenders will want to explore your current living expenses & financial commitments
- Check your credit rating… by checking your credit report earlier on, you will know what it contains before a lender accesses it. If there is anything on it that isn’t correct, you have time to contact the company that recorded it to get it corrected.
- Cut down on unnecessary financial commitments… be mindful of credit card, store cards, and interest free period card limits. The credit limit limits on all of your cards are included in your repayments as if they are fully drawn. Having high credit limits will affect what you can borrow.
- Have a savings history… I can not stress this enough! SAVE SAVE SAVE – showing that you can manage expenses & save money is a big tick for lenders. Your savings will have 2 purposes when borrowing:
- The amount of money you put into a separate bank account to save, can be used to meet your loan repayments.
- Your savings form part of your contribution to buy
What documents you need to provide to apply for a loan
To speed up your loan application, whether your financing a bike, refinancing your home or upgrading your car, you will be required to provide as a bare minimum:
- The front & back of your drivers licence (photo ID)
- Medicare Card
- 2 most recent payslips
- 45-90 days most recent transaction bank statements