Preparing for a Mortgage Application
If you’re in need of home loan advice that relates to the preparation of a mortgage application, then this article will cover the basics. Applying for a loan can be a challenging activity, what with the variety of documents that need to be provided, forms that need to be filed and other processes that need to be undertaken.
Here are a few tips to help you to prepare for your application.
Calculate your finances with a mortgage calculator
Mortgage calculators have been around for a few years now and although they might be pretty low on a person’s list of things to do before a loan application, they can actually be very beneficial when it comes to working out your repayment potential. Just a quick search for the best loan calculator in Australia will provide a range of results – and as most are free to use, there’s really no reason not to give them a try.
Record your financial income and outgoings
If there’s one thing that a potential loan provider will want to see above all else, it’s your financial record. They will use this data to identify whether or not you are in a position to repay your loan back over time. The frequency in which you can (weekly, fortnightly, or monthly) can be adjusted, as can the amount of time that you pay back what you borrow. Before applying, be sure that your income and outgoings add up, and that you have enough left over each month to demonstrate that you will be able to pay what you owe.
Consider your options
Although many people opt to apply to a particular bank – there’s really no harm in applying to two, three, or even four. Just be sure to have your financial documentation in order and present all relevant data when requested, and you’ll be increasing your chance of approval several times over. You don’t have any obligation to tell your lenders that you are applying to several – unless you want to, of course.