Signing up for a home loan can be confusing, I know. If you’re not sure how to proceed or how to get started, this article should give you all the info you need. Keep reading!
Know your options
A lot of first-time homebuyers are not aware of this, but there are tons of choices when it comes to picking out a home loan. Some are even much better what lenders offer you from the start. In my experience as a mortgage broker, I say, it always pays to do a bit of research! Think of the factors that will affect your loan. Take your time and shop around so you’re sure of your decision before signing that dotted line.
Compile your documents
No one likes going back and forth. That’s why I always advise my clients to prepare all their documents before going for a home loan. This quickens the whole home loan application process! Some of the files that you need to present would include documents for:
- Proof of income
- Assets and liabilities
In the end, each lender has their own set of requirements. Be sure to note those down when you do decide to apply for a home loan.
Check your papers
Now, before you submit your files, don’t forget to go over them! Review the spelling, details, and other important info. Your lender will verify these papers to see whether you’re legible for a home loan. The fewer mistakes you have on your documents, the faster your home loan application process will get approved!
Prepare your credit score
Like I said before, lenders will look through your paperwork… and yes, this also includes your credit score. You need a higher credit score to convince lenders that you’re able to handle repayments. If your current credit score is a bit low, don’t worry. There a plenty of ways on raising it up. I’ve helped many of my clients do it and I can help you too.
Build your deposit
The deposit is usually 20% of the total value of the property, but this will depend on the loan you’re signing up for. On top of that, you will also need to cover the fees for taxes and other purchase costs. Taking care of your deposit ahead of time shows a lender that you have financial discipline. In turn, this puts your application in a more favourable light. If you don’t have the 20% don’t worry – there are still other options.
Consult your local mortgage broker
Yes, you can complete your home loan application process on your own. But, it definitely helps to get expert advice.
First of all, as a mortgage broker, I can narrow down your search. You can get the property you want and a loan you can afford ASAP. No more getting your hopes up only to be let down. Second, I can prevent you from making fatal mistakes with your finances. Signing up for a home loan is a lifelong commitment, so you need to be careful with the choices you make today.
Well then, are you now ready to apply for a home loan? If you still have any questions or concerns about the topic feel free to send me an e-mail. I will walk you through the entire process so you can get approved for a home loan without any hassle!
Will Bell Mortgage Broker is a mortgage and finance broker based in Melbourne specializing in residential home loans. Will is all about the average Australian understanding just enough of the broader economy to take action on your own personal economy. He is the host of the My Personal Economy Podcast which you can check out here.
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