Home Loan Application Process
As exciting as applying for a home loan might be, it can be a real test of patience and endurance. Especially if you are unfamiliar with the terminology, policies and procedures associated with the world of finance and property.
To put it in the simplest terms, when you apply for a loan regardless of whether it is your first, second or third loan you essentially trying to persuade your bank that you are a reliable enough person to lend money to. Of course the greatest concern for any lender is non-payment.
Your bank or lending institution will be doing what it can within its lawful powers and control to extract evidence of your financial credibility. The main question on their minds will be whether or not you can be trusted to make regular, timeous repayments without causing them grief.
There is a wide range of things you can do to increase your chances of securing a home loan for your dream property. The best and simplest method of doing this is by saving proof of on time bill payments, proof of regular source of income, little to no other debts, and of course, an immaculate credit rating.
You also want to make it clear that you are the sort of client that would walk that extra mile just to make repayments, even if that requires for you to pursue a measure or two to be cut down your spending.
The greatest proof of your ability to save is by demonstrating how much you have put aside towards your home loan deposit. In the months and weeks in the lead up to your application, make sure you pursue every effort to set aside as much extra money as is possible. You would be surprised how much closer you would be to your dreams by doing this.
Make sure you pay off all your other debts as well as close off any credit cards or other bank accounts that you do not use before proceeding.
Bear in mind though that each lender will view your application through a slightly different set of criteria. Depending on sort of home loan product you are applying for and whether or not this is your first home loan, or if it is for personal use or investment, the lender will take all that into account before making a decision.
If you have secured yourself a home loan deal and feel that you are not saving as much as you should, at SwitchMyLoan.com.au we will find you a better home loan deal with a cheaper interest rate that could, in the long run, save you thousands!
Call 1300 307 155 and start saving today!
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