Getting Your Home Loans Melbourne Approved

To ensure that you put your best foot forward when applying for a home loan, follow these seven tips below and you’ll be well on your way to a new home loan in no time.

If you’ve been dreaming of owning your own home for a while now, but have not quite been able to get yourself approved, the following tips will help you get access to the right home loan to suit your needs.

• Decide on your limit. Figure out what your budget is and how much you can afford to pay in mortgage repayments. Be realistic with your budget and factor in a 5% buffer so that you don’t find yourself short. Use our mortgage repayment calculator to help figure out what you can afford. Don’t forget to factor in upfront costs as well. Use our buying costs calculator to find out what these might be for your situation.

• Create a budget. If you’ve been knocked back before, it’s time to review your budget and create a realistic one. The aim is to stick to this budget for at least 6 months prior to applying for a home loan. You need to have a solid history of savings so that lenders can see how you can save and that you have a good deposit.

• Create stability. This is an important aspect in getting approved for a home loan. Lenders like to see that your living situation is stable. You need to have a stable job and show a stable rental history. If you have to change jobs during this 6 month period, aim to stay in the same line of work or hold off making a career change until after you’ve been approved for a home loan.

• Understand your credit file status. Along with the three points above, your credit history will play a large part in getting approved for a home loan. Do you know what the contents of your credit file say about you? Do you have any outstanding debts that haven’t been paid? Lenders will use your credit file to help calculate your credit score, which is what determines whether they will lend funds to you or not. You can access your credit file by visiting www.mycreditfile.com.au.

• Show you can live within your means. If you’ve got credit cards, lower your limits and if you have more than one, reduce this down to one or none. An important fact to be aware of is that for every $100 of credit limit you have, this lowers your borrowing capacity by up to $500. It’s important to try and avoid having credit cards. This applies to store cards as well. Personal loans also count, so the less debt you have when applying for your home loan, the higher your approval rate will be.

• Keep bank accounts in order. During this 6 month period, you want to ensure that your bank accounts portray the right picture to prospective lenders. This means that you don’t want to have any late payments showing on your account, nor do you want to have any of your account’s overdrawn during this period. Most lenders will want to see at least 3-6 months worth of bank statements, so make sure they’re in order. If you’re self-employed, you’ll want to ensure your taxes are up-to-date and that you don’t owe anything before applying for your home loan.

• Utilise a mortgage broker. The best way to ensure that you get approved for a home loan is to utilise the services of a mortgage broker, like Australian Credit and Finance. We can help you navigate the approval process and provide you with a wide range of choices in lenders. We have access to a number of lenders Australia wide and will ensure that you get the best deal available.

Getting approved for a home loan can often seem like an uphill battle, particularly if you’ve been knocked back before. Home Loan Melbourne lenders look for specific things in borrowers and at Australian Credit and Finance, we know what these are. We can help you craft an application that meets those requirements and offer you advice on how to reach those targets if you’re not quite there yet