6 tips for getting a home loan
1. Proof of income
Save two trips to your lender or broker, and make sure to turn up with your:
- Employment details
- Recent tax return
The main thing your broker and lender will be looking for is whether your home loan repayments are less than 30% to 35% of your gross monthly income.
2. Slash your debts
Credit card? Time to start paying this off each month...
Car loan? You might need to up your payment.
Personal loan? Time to knuckle down!
3. Save, and save, oh, and save!
Did you know a 20% deposit will help you avoid paying Lenders Mortgage Insurance?
You might also want to get your hands on a good budget calculator! People can save thousands of dollars using these!
4. Find a guarantor
"Hey Dad, don't worry about inheritance, can I borrow your equity?"
A guarantor, such as a parent, can financially support your loan application be securing it against their home.
5. Prove repayment history
You know how in tip 2 we suggested you start paying off those debts? This repayment history, if consistent, will also help with your application! This will reassure the lender that you are capable of constant payments.
6. Minimise loan applications
Once you have set your eyes on a new home, you will need to start being responsible with that cash flow! Keep your loan applications to a minimum. Previous loan knockbacks can leave a market on your credit history.
Of course, sometimes it's easier said than done. At Brunslea Park, we are always helping people who are ready to build their own home for the first time, second time or third time. Even if you aren't looking to build for another 12 months, we have the connections, support and resources to see you in your home sooner, with less stress and more fun!
Contact us today to receive your first free 15 phone consultation. We can help point you in the right direction to start your building journey, and keep you up to date with our events, construction updates and more!
Resource: Aussie Home Loans Australia