Home loan application dos and don'ts

Three ways to get your home loan application approved fast

A home loan application may seem like a daunting process but it doesn’t have to be. We can tell you what documents and information you need to ensure a seamless, fast approval process.

Clean up your credit

Make yourself an attractive prospect to lenders by ensuring you are of good financial standing. Pay off your credit cards on time and even consider reducing the number of cards you have. Keep on top of your bills and obtain a copy of your personal credit file through an agency such as Veda.

If you have adverse listings on your credit file they are sure to raise concerns with a lender. Be prepared to explain them in an open and honest way. Perhaps you lost your job or were going through a particularly rough time in your life. Explain how you managed to rectify the situation and how you’ll avoid it occurring again in the future. Remember, honesty is always the best policy.

Be deposit-ready

Before applying for a home loan, try to save up as much as you can for a deposit towards your home. This can help you on two fronts, firstly, the bigger the deposit, the less you’ll need to borrow, which will save you in interest charges over the long term. Secondly, having savings will show a lender that you are disciplined and financially astute making you an attractive home loan customer.

Know your position

If you have dependants, liabilities or are self-employed, it helps to know the impact this may have on your home loan application. Loans are available for self-employed borrowers, but you’ll need to provide additional information and documents to support your application, such as financial statements and taxation returns.

If you have other liabilities or dependants, having a clear picture of your outgoings and expenses will help a lender determine how much you can borrow. Your lender will want to ensure you will be able to manage your loan repayments and that you aren’t over committing.

At Beyond Bank Australia, we are always happy to discuss your needs and circumstances to help determine the home loan that’s right for you.

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