How to Improve Your Financial Record to Get Approved For a Home Loan?
Did you know that of the 10.3 million property in Australia, 6 million have mortgages against them? This is a total value of owner-occupier home loans of $18.7 billion, with an average loan size of $506,511. For first home buyers, this average is slightly lower with the average first time mortgage being $418,591, as of November 2020. If you aspire to be one of these property owners in Australia then you’ll need to start looking at your financial record and making sure you look positive in the eyes of future lenders. So how can you improve your financial record to get approved for a home loan application? Here are some useful tips by a mortgage broker that will help you in improving your financial record.
How to Get a Home Loan
Here are 5 important things that you can do to get approved for a home loan:
1. Seek stable employment
We appreciate that this may be difficult in today’s pandemic environment, however the more stable your employment is the more favourable you will be viewed by the banks.
If you do need to change employers, try to be with your new employer for at least six months before applying for a loan.
2. Save for a deposit (or rainy day)
Showing that you can, one save and two, save a large amount of money is very important to showing your financial credibility.
Then this savings amount you’ve been dutifully putting away for could end up being your home loan deposit.
3. Show you can make repayments
Being able to show you are capable of making repayments is a crucial requirement for lenders.
When you apply for a loan lenders will be assessing your current living expenses and financial commitments. They will go through these in detail and make sure you’re capable of making future loan repayments based on your past spending habits.
4. Understand your credit rating
Did you know that you can find out what your credit rating or score is before you even start applying for a loan? It’s great to find out early so that you can see how future lenders might view you and it will give you a chance to ‘fix’ anything up.
Your credit rating may influence how much credit a lender will give you. The lower the score the bigger risk you are to a lender. Contact your mortgage broker to obtain access to your credit score.
5. Consolidate debts
Credit card debts and personal loans can impact your home loan application so it’s a good idea to try and pay these off before you commit to a large loan.
If the debts are too high to pay off, talk to your mortgage broker about consolidating them into one to make them more manageable to pay off going forward.
Getting Approved For a Mortgage
Getting approval for a mortgage in Brisbane could be a tough task without using a mortgage broker. North Brisbane Home Loans is a leading mortgage broker that provides a range of home loan options. We aim to help get a perfect home loan with low rates and awesome features. Contact us today!