Time to make a home loan application?
Getting approved for a home loan can be one of the key challenges in the property purchasing journey. Most people do their own research about how much they could borrow for a home loan, whether they qualify for any grants or funding support, and have started to save up for an initial deposit payment. These are all great first steps, but then you need to know how to get approved for that all-important home loan to make your dream of property ownership a reality.
Create a home loan plan
It’s important to have a plan for your home loan. This means speaking to a home loan professional about exactly the kind of loan that suits your current circumstances. Brokers will also have a good understanding of which lenders are more likely to approve your application depending on their previous experience. After all, there’s no sense in applying for a lender that won’t consider lending money to particular cohorts. Creating a plan with an expert is a great way to save time in the application process.
Consider your credit cards
When it comes to purchasing property, it’s usually a good thing to have a credit card and some regular activity on your statements. Some people like to do their weekly shop on the credit card, or use it for paying bills, and then pay off the balance each month. However, be wary not to max out your credit card limit, as lenders will not look at this favourably in your application. In fact, it could be a good idea to reduce your credit cards to a reasonable limit and be in with a higher chance of loan approval.
Always be on time
This is a key rule to remember in the run up to your loan application – make sure that any payments you make are on time, and this is reflected in your statements. If you have some loan payments outstanding or you are regularly behind on your bill payments, this will look bad for anyone considering loaning you money. Remember, the loan process is about trying to convince someone that you can be trusted to make your repayments, so be sure that you don’t give them a reason to think otherwise.
Have stable employment
This is an important step in the loan application process. Most banks require minimum salaries to be able to take out a loan, and in general, the more you earn the more you can borrow. This doesn’t mean that you should borrow to the top limit of what the bank says they’ll give you. Make sure that you speak to an expert to understand how much you should be borrowing so that you don’t fall victim of over-leveraging and not be able to pay the loan back. For lenders, a stable, permanent role is usually the most attractive, so if you’re able to, ensure that you can prove your job is secure and providing you with enough cash to afford your repayments.
Get a professional on your side
A lot of people go it alone in the home loan application process. However, with an expert you’ll be able to get a much better view of the kind of loans you’re eligible for, before you apply. This will save a lot of time and hassle in the long run – and someone else will even do all the paperwork for you! Book a free consultation with a Reventon adviser to find out more about applying for home loans and what our expert team can do for you.