Yellow Brick Road: Home
YBR

5 Steps - The Path to The Perfect Home Loan

In this article:

Ready to buy your dream property? Take a step (or five) in the right direction toward securing your home loan.

It's time to find your dream home. You've narrowed down the suburbs you're interested in, decided what features you can't live without and have a good idea of how much you need to spend. You've saved a deposit, and you're ready to apply for a home loan. Take one step back, and by following these five steps forward, you'll make applying for a home loan so much easier.

Step 1: Work out how much you need to borrow

In addition to the purchase price, there are other mortgage fees to consider when calculating the funds you'll need for your new home. Before you commit to buy, you'll need to check the condition of the property, so paying for a pest and building Inspection is a good investment. Once your offer is accepted, be ready to pay stamp duty, a charge applied by state governments for the transfer of land or property. Also, engage a lawyer or conveyancer to handle the settlement of the property.

Step 2: Take a sneak peek at your credit score

Your credit score is used by lenders to assess your level of risk before they decide whether to offer you a loan. The good news is that you can access your credit score, and if it needs to improve, there are ways to take your score up some points.

Useful reading: Bad Credit and How to Clear It

Step 3: Tighten up your money management

Now more than ever, lenders are trying to ensure that the home loan you apply for, will suit your financial circumstance. In the past, you provided an estimate of living expenses, but now you'll need to justify your figures by presenting three months of bank account statements. Review your spending, and if any areas need attention, now is the time to tighten spending on non-essential items so you can present a healthy financial position.

Useful reading: 7 Genuine Money Saving Hacks That Really Work

Step 4: Compile documentation

With your financial management running smoothly, it's time to demonstrate your suitability for a loan by presenting the information that will make up your loan application documentation.

Your documentation should include (but may not be limited to):

  • personal identification such as birth certificate
  • proof of income - recent payslips showing three months of continuous employment or personal income tax returns (in the case of being self-employed)
  • proof of assets
  • existing credit arrangements, such as personal loans
  • living expense information, with savings account statements for three months
  • credit card debt details
  • details of loans held with any lender.

Step 5: Seek advice from a qualified mortgage broker

It's never too early to take the first steps towards owning your dream home. The good news is, by choosing us as your Step 5, we can help you with Steps 1-4. Book an appointment and let's talk.

Feature articles

Should You Invest in A Holiday Home? Holiday homes – is investing in a beach shack or bush retreat a good move?

How much do I need for a deposit: will 5% do? Does saving for a home loan mean giving up your daily takeaway coffee habit?

Top 5 Questions We Get Asked About Genuine Savings Will a lender think your deposit savings are genuine? Your questions answered…

What You Can Do to Boost Your Superannuation Don't wait until retirement to think about your superannuation. Boost it today with these simple tips.

How Rental Yield Can Help You Make Expert Decisions Find out how to calculate rental yield and why it's useful.

View all articles



Enquire now