To some borrower’s surprise, qualifying for a home loan isn’t always as hard as it may seem. To help you be in the best financial position possible to gain home loan approval here are some additional tips:
- Set yourself a good savings plan by putting aside the difference between your rent/board and the mortgage repayment you’ll soon be committed to. This will help you get used to the financial commitment of a home loan.
- If you are expecting to receive a monetary gift from your parents or an inheritance in the lead up to purchasing your property, keep in mind that while the funds will boost your deposit size, they will not be included as genuine savings when the lenders assesses your ability to repay your home loan.
- Lenders want to see a steady recent employment record that shows you are receiving regular income. If you recently changed positions within a company due to a promotion or received a pay rise, or changed jobs multiple times in a short period of time but they are all connected by industry, be sure to explain this in the home loan application.
- Once you have five per cent of more of the estimated purchased price (your deposit) in savings, consider clearing any excess debt that you might have from a car loan and other personal loans, store cards, and so forth.
- Lenders will require you to list your current financial commitments, such as rental car and personal loans, credit & store cards, child maintenance etc. have your records on hand. If you have evidence of a stable employment record and regular genuine savings, you should be on the right track to loan pre-approval.