Take the stress out of applying for a home loan for your first Hamilton home with a little preparation.
Here are a few things you can expect to encounter when seeking loan approval for your next property.
Whether you are applying for your first or fourth loan, the process can seem overwhelming. But it doesn’t have to be.
Remember – knowledge is power! By just doing a little research and preparation, you can feel more confident about applying for a home loan.
Got I.D.?
First things first – you need to prove you exist!
Photo id will be needed. A passport or drivers’ licence is the most obvious, but maybe even a proof of age card if you do’t have either of these. These will be the first things you’ll need to present.
It’s also a good idea to have these certified – which is a process that gives extra certainty that they are authentic. Some lenders may even include this as a requirement – our Mortgage Brokers will be able to help you prepare accordingly.
Then there’s non-photographic proof of identity; documents like a Medicare card, a rates notice or power bills or water rates. Just make sure the bills are no more than three months old.
And when it comes to producing ID, more is more! Most lenders will be happier with more than less. so gather up as much as you can.
Your income and employment status
You’ll be expected to show your financial situation – pay slips, bank statements, even references from your employer. All to show that you have a steady income (and job.)
Assets and liabilities
It’s typical to have to declare everything you own, and what debts you still have to pay off.
This information will go a long way to determining your borrowing capacity, as well as providing lenders with peace of mind, should you find yourself unable to repay the loan.
Remember to provide bank statements, any savings accounts and term deposits, as well as details on any current liabilities or financial obligations – these might include Higher Education Contribution Scheme (HECS) statements, credit card statements and other repayment records.
Establishing your expenses
Your ability to meet monthly loan repayments is paramount for lenders, so be prepared to outline all your current expenses.
Instead of plucking numbers from the air, make a list of your monthly outgoings. Your list should include everything from rent, utility bills and travel expenses to gym memberships and leisure activities.
This will not only help your lender evaluate your loan application, it will also give you a good indication of what you can realistically afford.
While you may encounter some troubles along the way, coming prepared when applying for a loan can make the whole process run a lot smoother.
If you are unsure of what is required, please don’t hesitate to contact us for more information.
