While there has been more of a tendency for lenders to be conservative in the current economy than in the past, there are still some great best practises to follow to boost the chance of your home loan being approved. As a Baldivis, Kwinana, Cockburn and Rockingham home loan experts, we know that there are certain things that make you look more appealing to a lender and certain blemishes that could make it more difficult for you to get your home loan approved. Read on for some guidance.
A Bigger Down Payment Gives You Better Chances
The lower your down payment, the more terms and conditions you’ll be subjected to. If you can save more than 10% of your home’s down payment, you’ll be in a better position to get approval. Those with a smaller down payment are more closely examined for job stability and credit worthiness.
Clean Up Your Credit
Having a good credit report makes a difference. Not only will potential lenders look at what sort of debt you have, they’ll also look at your available credit. Looking like you could get into too much trouble could work against you. Conversely, having zero credit available may also work against you. Be careful about having too many recent inquiries on your report. When was the last time you looked at your credit report? How do you think you look on paper? Stable job history and appearing to pay your bills on time will increase your chances of getting a home loan approval and with a favourable interest rate.
Have Some Liquid Capital
By having money in savings above and beyond what you’re using for your down payment, this shows lenders that you have the ability to save money and that you have money aside in case of emergency. Having 3 or more months worth of expenses (six months is even more ideal) in readily available savings shows a tendency to prepare. This will not go unnoticed by lenders; they appreciate this!
Benefit from Leveraging the Expertise of a Local Mortgage Broker
We serve the Rockingham, Kwinana, Baldivis and Cockburn areas with expertise in the field of mortgages. We would be happy to help you review your options to qualify for a home loan approval.
By meeting with a mortgage broker, you’ll also have a single inquiry on your credit report rather than many, which could work to your advantage, too. We can help you determine how to get approved, find out how much you can afford, and we can help you find great rates available without querying your credit half a dozen times!