Applying for a home loan can be a daunting process. There's no doubt, you worked hard to get a deposit together, and the idea that an application can make or break your dreams for home ownership is a little bit stressful. But it doesn't have to be, so long as you get your ducks in a row prior to beginning the application process. Here are four quick tips for how to approach home loan applications for your new property in Bunbury.
It goes without saying that saving and the elimination of debt are essential to home buying – so it stands to reason that by the time you are ready to apply, you should have a fairly clear idea of what your financial situation is. You'll want to make sure you know how much is in your super fund, you have documented all sources of your income, and get an accurate picture of credit cards of personal loan balances. One of the best things you can do is get a free credit score check, which will help you determine how lenders view you.
We mentioned documenting your employment in the previous section, and the reason for this is to show that you're secure in your income. Lenders want to make sure you're not a risk, and you can establish this by showing a history of stable employment. For this reason, if you've just started a new job, it might be worth waiting a few months before beginning the application process. If you're a contractor and struggle to prove your employment, you'll be eligible for a low doc loan.
It may seem logical to apply with multiple lenders to either increase your chances for approval or to get the best deal. However, every application requires the lender make an inquiry on your credit score – too many of these inquiries can have a negative effect on your credit score. Comparing lenders is a great approach, but be smart about when and how often you apply.
Our home loan calculator can help you determine what sort of mortgage you can afford based on your income. It's 100 per cent worthwhile knowing this information, as applying for a loan outside your means is a surefire way to get rejected. Calculate what you can afford, and then browse houses or units in Bunbury to find out how far your money will go.
Are you ready to see what's on the market? Contact the team at Ray White Bunbury today.