If you have always dreamed of owning your own home in Australia, you are not alone, around 10 million people own one! But considering how tight your finances are, you have to wonder how they managed to pay for them? Well, an estimated 4 million people acquired home loans to make it happen!
If purchasing a home is on your list, you can get in touch with a loans company in Sydney that can help you make your dream come true! The following are some things that might up your chances of getting a home loan approved!
Manage your credit carefully – Any potential lender is going to look very closely at your credit history in order to be sure you will be able to make your home loan repayments. This makes it very important to be careful about paying all of your bills in full and on time so they will feel comfortable that you aren’t a risk.
Double check your current credit score – There’s a silly rumour floating around that when you check your credit report it can have some kind of negative effect on your overall score. This is, of course, ridiculous, and simply not true! There are actually two types of checks that you can make regarding your credit score. A ‘soft’ enquiry of your own credit report won’t affect your score at all, but giving a lender permission to check your credit report will be classed as a ‘hard’ enquiry that actually does have an effect on your score. It is recommended by the Australian Securities and Investments Commission that you perform an annual free credit check even if you aren’t looking into getting a loan in order to –
– Check that your name and date of birth are correct
– Find out if your address needs to be updated
– Check to make sure all of the amounts are correct
– If you have been mistakenly recorded as missing any repayments
– To make sure that no one has stolen your identity
If there is anything that is incorrect, now would be a good time to get it straightened out!
Keep your documents current – Your potential lender will require some information from you when you begin the home loan application process in order to fully understand your current financial situation. Be sure you have your latest savings records, existing loans and credit card statements, your salary pay slips, and your tax returns up to date and at the ready to make your home loan application process go smoothly.
The right type of mortgage – Should you go with variable or fixed? Interest only or principle and interest? When it’s time to choose your home loan you need to carefully weigh the necessary features, the cost in fees, and how your repayments will be affected.
The following are some different types of loans to consider:
- Interest-only loans
- Principal and interest loans
- Redraw, offset, and line of credit loans
- Construction loans used for renovating or building
- Variable, fixed, and split rate home loans
The bottom line is that it’s important that you can prove to your lender that you are financially able to pay them back!
