Mortgage Applications & Pre Approval
To gain home loan approval you will need to show your income to the lender, as well as your savings record and your expenses. So start getting your finances in order and stop buying new shoes or expensive items! Lenders want to asses your situation to see if you qualify for a
home loan, and to determine how much you can borrow. Because of the global financial crisis, banks and other lenders are reviewing their lending criteria, and are getting much tought, many have stopped offering no deposit home loans.
Home lending has certainly got tougher in recent months, but if you do get your mortgage application approved, interest rates are at low levels and make it more affordable to buy property. Property prices have stablised and interest rates have fallen by around 4 per cent in the past few months.
Because gaining approval is now harder than before, talking to a mortgage broker is the safest way to put put yourself in the best light. Mortgage brokers deal with mortgages, talk to lenders and secure loans for homebuyers every day. So a good broker can work wonders for you when it comes to gaining approval. Credit ScoreMost lenders use a credit scoring system. Don’t worry too much about it or let is put you off, it’s designed to protect you as well as the lender, and to ensure that your borrow only what you can afford.
If your weighted score passes a level pre-determined by the lender you are usually given pre-approval, subject to the property you wish to purchase passing its valuation test.
What lenders look at:
- previous loan applications
- overdue accounts
- defaults
- bankruptcy information
- Remember; overdue accounts, even if you pay them, remain on your file for five years.
Property ValuationAll approvals are subject to the property valuation. The loan will be 'conditional' until this is completed. The lender will look closely at the report and check to see if it matches the conditional approval levels. If it does, then the loan will become fully approved. Keep a copy of your application and any supporting documents for future reference.
Personal IDLenders will want to see proof of your income, residence, savings and identity. Although no-documentation loans and low-doc loans require limited or no proof of income, proof of identity is non negotiable, and is required on all home loans.
Your Credit ProfileAlso assessed is your credit history. Each persons credit file is made up of your personal details, credit applications from the previous five years, overdue accounts, bankruptcy information and public record information.
We are a team of brokers, all experienced and trained to support you with your mortgage needs. We offer assistance with your home loan application from start to finish. You can call us on
or submit your details to us on line.