Quick Guide to Getting a Loan
Once you’ve found the perfect home, it’s time to apply for a home loan. But you can start preparing at any time. We guide you right through the loan application process, and show you how you can improve your chances of approval for the ideal home loan to suit your needs.
1 – Prepare your deposit
For most borrowers saving the deposit for a first home is the first step in the buying process. The financial discipline needed to save a deposit puts you in good shape to deal with the task of repaying a home loan in the years to come, and helps prove your credentials to a lender.
Your deposit savings have to be accessible once you need them for purchase. If your deposit savings are held in shares or a unit trust you need to allow time to sell or redeem them and receive the funds in your account. If your savings are in some form of fixed term account, you need to ensure you can access your funds without penalty
2 – Compile your paperwork
A loan application will require documentary proof of your financial position and history. Among the documents you may need to provide are:
- Proof of income and employment status – pay slips or employer letter
- Proof of Assets – share certificates or titles
- Evidence of liabilities – loan agreements, credit card statements
- At least three months of savings history – bank statements
- Recent tax returns – especially if self-employed
3 – Prune your debt
Part of your strategy in saving a deposit might be reducing outstanding debts. Your borrowing capacity for a home loan will be limited by the extent of your other debts or financial liabilities. Even if you never use anywhere near your credit card ‘limit’ this limit is usually counted by the bank as a potential debt. Consider reducing your limit if feasible, or cancel unused cards to clean up your liabilities. If you have several debts you might consider consolidating them in to one simple loan, at a reduced interest rate. We can help you find a loan for this purpose
4 – Get Loan Pre-approval.
A lot of home buyers sort out their finances before they start looking at properties. By applying for a free home loan pre-approval, you know how much a lender is prepared to lend you and you know exactly what properties you can afford. Plus, if you have submitted most of your documentation in advance, this speeds up the loan process once you’ve found your home.
5 – Apply for the First Home Owner Grant
The First Home Owner Grant is a government grant to encourage and assist home ownership. Subject to buyer and property eligibility rules, this grant, or other concessions such as stamp duty savings can be worth many thousands of dollars to first home buyers. Grant applications are submitted during your loan application to your state or territory administration to supply funds at settlement time. The rules for eligibility do vary from state to state.
At we can help you at every step of the lending process, to ensure you get the loan to suit your individual needs and circumstances, and our service is free.
“Being a first home buyer I really had no idea all that was involved in purchasing a property. Kathy was exceptional, she went above and beyond to ensure I got the best possible deal for my first mortgage.
Not having any previous experience in the property market she made the often complex processes simple and straightforward, coming to my workplace and home on numerous occasions to explain paperwork.”Liz - Caringbah
“We tried to refinance with a company we had used before and were given the run around. I was given Kathy’s number and there was ‘no fuss’ we got a great deal and she explained the process in language we could understand. If I was in the market again for another home loan then I would call Kathy first.”Dougal & Abby – Belrose