For the greatest possible chance of getting the loan that suits your circumstances, you need to tick all the boxes. If an application is not completed correctly, you risk delays in approval, or even being declined by potential lenders.
Other than the obvious documentation that needs to accompany an application, satisfactory identification and evidence of income by way of payslips, many lenders will expect to see a reference from your employer, group certificates, PAYG Summary or tax returns and records of any investments or shares that you might have.
If you are self-employed, you will need to organise alternative documentation to prove income, such as financial statements relating to the profit and loss of your business going back two years.
Lenders will also want to see bank statements going back a few months in order to track your spending and savings history. Most importantly, you will need to provide the details of your debts.
“I commonly see the same type of document sent back from the lenders, often due to non-disclosure,” explains Justin Smith, a mortgage adviser from Smartline Rockingham.
You must include documents that outline HECS debt, personal loans, credit card liability and any expenses relating to dependants. If you don’t disclose this information, your loan will very likely be declined.
In order for a lender to assess your capacity to service loan repayments, every financial detail must be taken into account.
Lenders want to see proof that you are capable of managing the responsibility of the loan, through steady employment, good credit history and a debt-free approach to your financials.
“We like to help customers that are in trouble. But if they have bad habits, we can’t really help them before we know that they can commit to us in the future,” he says.
By having all of your documents organised and a saving and repayment plan documented, as well as evidence that you can commit to the plan, you will increase your chances of receiving the loan you are after, even if your credit history is not perfect.
“We do look at customers who have had hardship issues,” explains Smith.
“If we can see that they are trying to help themselves, and going forward we are putting them into a better situation or a better product, then we will proceed with that.”
In many cases, home loan applications require professional guidance and help, and Smartline Rockingham mortgage advisers have the expertise to match a loan to a borrower and help you to ensure that your documentation is in order.