Your dream home is just a successful mortgage application away!
But how do you fast-track the application process and up your chances of landing a home loan faster?
If you’re wondering how to get a home loan the quick and simple way, spare a cheeky 5 minutes and study up on these 6 tips.
1. Save a Decent Deposit
Showing you can save money and manage your expenses responsibly will hugely improve your home loan eligibility.
Your required down-payment amount will depend on who you’re lending with, and what kind of loan you choose. This could be anywhere from 2.25% to 20% of the total price of the house.
2. Pay Off Other Debts
The fewer financial commitments you have, the better.
Pay off or reduce your other debts such as credit cards and car loan debts to increase the surplus cash you have available to pay off your mortgage.
Handy hint: Cutting up your credit cards won’t actually eliminate your debt.
3. Provide Proof of Income
Save your lender’s time (and your own) by preparing your proof of income documents before applying for a home loan.
4. Find a Guarantor
A guarantor is someone who uses their own property’s equity to safeguard your home loan (i.e. they become responsible for your repayments if you can no longer afford to make them). Asking your parents (or your filthy-rich aunt) to put up a property they own as financial security for your loan can help you get a home loan faster – even if you don’t have enough cash for the deposit right now.
5. Ask Your Lender to Check Your Credit History
Make sure this is done in the preapproval stage. This will give you a chance to improve your credit score if needed. The last thing you want is to get to the final steps of the home loan process only to be denied when your lender finally checks your credit score.
You can also request your own credit score report for free, using any of these sites:
6. Don’t Apply with Too Many Lenders
Limit your loan applications to as few lenders as possible. Sure, it’s good to compare lenders, but if one application is denied, this can affect your credit history and decrease your chances of landing a loan with the next lender.
Now get prepared to move into your new home with our handy Moving House Checklist.