The home loan application process is notorious for its complexity and tediousness. To make the process smoother for yourself, there are several tips and tricks you can employ, getting you closer to your dream home in Melbourne, faster!
Of course, the basics go without saying, such as proof of identification and evidence of income. However, many lenders will want to see further documentation, such as a reference from an employer, tax returns, and records of your assets or shares. Providing this information is not only beneficial, but sometimes necessary to get your application progressing.
Those that are self-employed will often need to provide additional or alternative documentation, like financial statements that detail their business’s profits and losses. This will often be in the form of a tax return from one or two years ago.
Also for those who are self-employed, there is a low documentation loan scheme too. Usually due to the risk, the interest rates can be sightly higher than a full documentation loan.
As with many legal and financial applications, it’s key to have at least a few months’ worth of bank statements, allowing lenders to track your spending and savings history. This also includes being transparent about debts by providing documents that describe your HECS debt, personal loans, credit card debt and dependents who rely on you financially. This allows the lender to confirm customer-declared living expenses and see all liabilities, store cards, balance transfer credit cards and other similar things. It’s essential to provide all this information; otherwise your loan will be declined once the gaps in your story come to light. To get the best loan possible for you, a lender needs to get an accurate sense of your capacity to service loan repayments, which necessitates being transparent about your every financial detail.
Things like steady employed, low debts and a good credit history give your lender a great sense of your responsible nature and ability to manage your loan. Just in case, keep an exit strategy on hand, as lenders may ask for this documentation too.
Having all the right paperwork on hand and a detailed saving and repayment plan written down, and evidence of your responsible character, you’re more likely to get the loan you want. Do not be discouraged if your credit history isn’t perfect, as thorough paperwork could still get you approved.
Mel Finance are the leading loan brokers in Melbourne, helping locals achieve the Aussie dream while maintaining responsible lending practices. We do all the heavy lifting – all you have to do is send the right paperwork our way!
For personalised advice, contact the best home loan brokers in Melbourne, Mel Finance Services.