If you’re planning a spring property purchase or to refinance you loan, get yourself the best possible chance of being approved for finance.
The following are key factors in lender’s deciding on whether to give you a loan:
- Your ability to service a loan
- Your savings history
- Your spending behaviour
So every potential borrower should aim to:
- Have a consistent level of savings
- Make sure all commitments are up to date
- Reduce/close any credit cards not being utilised
- Cancel any unwanted subscriptions
- Limit your expenditure
- Consolidate debt if you can
- Ensure your credit score is as high as possible
To demonstrate your income:
If employed:
- Ensure payslips are up to date
- Provide proof of any additional income, i.e. bonus, commission, overtime
- Ensure Transactional bank statements verify your salary credits
If self-employed:
- Make sure your Financials and Tax Returns for 2022 have been done
- Your Business Activity Statements (BAS) are up to date and any tax liability has been paid
- You can provide business bank statements that show income credits
- Or alternatively, your Accountant can provide a declaration to verify your income
If looking for a new purchase, getting a fully verified pre-approval before you start your search is key for the following reasons:
- It locks in the rate the loan is assessed at for 90 days
- All that is required when a property is found is a copy of the contract and a valuation
At a time with limited supply and moving fast is paramount, getting yourself mortgage ready is important so you can proceed with minimal fuss.
Please contact us if we can assist with your next loan application.