How to Get Your Home Loan Application Approved
Dilleen Property Group 2022
Getting a loan is one of the first steps required when purchasing an investment property. The downside is that this process can take a long time if you are not prepared and you may not get approved the first time round. Today I will provide you with a few tips to ensure you get your loan application approved on the first go.
Tip 1. Be upfront with your bank or your broker
These days you can’t really hide anything. Whether you’re the director of a company or you have bad debt, they use some pretty intense and comprehensive credit reporting data. You will get caught out either way.
Tip 2. Pay your liabilities on time
It’s important to pay your liabilities on time, such as credit cards, car loans, personal loans, after pay, home loans, etc. If the bank sees late payments it raises a red flag. If you only have one it may be okay, however if it is more than one within a period of 3-6 months, they’re going to ask a few more questions. If your reasoning is not justified for those late payments you may find yourself in a bit of strife and your application may potentially get declined on that basis.
Tip 3. Don’t use After Pay
I would highly recommend not getting into After Pay and related services as it can really hold up your application and doesn’t look great for your character profile. If you have multiple After Pay and Zip accounts, etc. it can be a bit of a detriment and a trop that a lot of people aren’t really aware of.
Tip 4. Make sure your documentation is correct
Ensure you are paying bills on time, your documentation is correct and reducing your liabilities. So if you have a credit card for $10,000 you might have 3 of them becuase you have credit card points and frequent flyer points, etc. Even if your credit card balanace is on zero, banks actually have to use that as a liability and assess it as a liability.
Every scenario is different everyone’s financial goals are different, but if you can keep your paperwork squeaky clean, be up front and be on top of your credit score, those things will really make sure you keep in check. If you're not sure about your credit score or you think you might have an issue definitely jump on Equifax or contact a Mortgage Broker to run through your credit file in a bit more detail and make sure it's okay. Even if it's not and there's any issues, there's always lenders out there that will help.
Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.
