If you are looking for a home loan in Rockingham, Kwinana or Baldivis, you are going to have plenty of choices. We feel that the most important way to find the right home loan is to go to a mortgage broker because they can increase the number of choices you have.
For example, the mortgage brokers at Smartline Rockingham have access to 28 different lending institutions. It is much more likely that one out of 28 lenders can give you exactly what you need than what your favourite lender can.
However, having a mortgage broker doesn’t guarantee a great home loan if you haven’t taken care of your own financial situation. Lenders want borrowers who they know with reasonable certainty will repay their loans fully. If you want the right home loan, you must shore up four important criteria that lenders use when making decisions.
If a lender is going to loan hundreds of thousands of dollars to you, they want to know that you have borrowed money before and paid it back on time. The cleaner your credit history, the faster the approval and the better terms and interest rate you will receive.
Lenders want to see that you have accumulated some assets or capital. Once again, this makes you look more prosperous and more likely to successfully pay back your loan.
In this case, your home is going to be your collateral. That will not be a problem. In addition, your home can sometimes be used as collateral for a “second mortgage” or personal loan.
Basically, your loan repayments should not be more than 35% of what you earn. In addition, your total debt load should not be more than 45% of your income.
If you are looking for a home loan, call Smartline Rockingham today. We can take a look at your individual finances and find the right loan for you. (08) 9527 1800.