When people call our mortgage brokers to ask about home loans, whether in Rockingham, Baldivis or Kwinana, they often have a bit of fear that their loans won’t be approved. We have access to a lot of lenders offering a lot of credit products, but even we have our limits. It is going to be up to you to demonstrate, with our help, that you will be able to make your loan repayments in a timely manner.
Here are three steps that nearly guarantee approval.
Start a Savings Account
Banks want to know that you can save money. First of all, it shows that you are financially responsible. Second, they know that if you run into a “rough spot,” you will have savings with which to make your loan repayments. They also know that you will be able to handle an increase in interest rates if you need to. Many banks like to see that you have savings between ten and twenty percent of the value of the loan.
Banks want to see that your funds have been in your account and not used for at least three months and preferably six months. Start saving now.
Clean Up Your Credit Report
Your credit report is a crucial factor in whether or not you are approved and how high of an interest rate you will pay. Make sure that you know what is on your credit report before you apply for a loan. Clean up any “black mark” you can possibly clean up. There may be some that you can’t, but you should do everything you can to raise your credit score.
“How Much Can I Realistically Afford to Pay?”
Figure out how much money you can realistically afford to pay per month. Don’t fall into the trap of thinking you can live on bread and water and that no emergencies will ever happen.
Call Smartline Rockingham
Call us today for more information: (08) 9527 1800.