How To Prepare For a Mortgage Application For Your First Home
So, you’re ready to take the next big step! Buying your first home comes with a feeling of complete fulfilment. It’s a journey that you want to enjoy every step of the way because, at the end of it, a dream of yours will come true.
Planning and facing any challenge can keep you on track. One of the very first things that you have to prepare is your mortgage application. Now, not everyone who wants to buy a house is ready to take on that loan. Banks have lending criteria that they meticulously review. But we are here to help you get the approval you need.
How To Prepare For A Mortgage Application
1.Speak With No Deposit First Homes Expert Staff
As a first time home buyer, it is understandable to have many questions about the process. To make sure that you are on the right track and everything will be in order, speak with an expert from No Deposit First Homes. Each step will be discussed with you in detail so you can get all the information that you need.
2. Fulfil The Bank’s Criteria
Employment Status – Applicants, ideally, should be in their current job for at least 6 months. 12 months is usually required for those under contract and casual employment.
Credit History – Pay off any debts and avoid applying for personal loans 12 months prior to applying for your home loan.
Savings – Save, save, save! Lenders assume that people who have savings of more than 5% of the purchase prices are far more likely to pay back a home loan.
Payment History – Pay on time. Lenders dislike those who miss payments even if it’s a couple of days late.
Type Of Property – Consider buying a house or unit over 50m2 internal area (excluding balconies and car spaces). Lenders prefer approving loans for properties that are “normal”.
Asset Position – Lenders like to see your assets, age and earning ability match the amount of loan.
3. Keep Your Documents
Lenders will ask you to present information in support of your loan application. The more complete the data is, the better your chances of getting approved.
Basic Required Documents
– 100 points ID: drivers license, Medicare & ATM Card.
– One recent credit card/loan statement received in the mail with complete pages
– One recent rental statement if you have any investment properties
– 3 months bank statement
– Construction documents such as building contract, formal quote, plans, specification,
– 6 months statements of your current home loan received in the mail with complete pages
– For Employed Applicants
Two most recent payslips
Last year’s group certification
– For Self Employed Applicants
2 years personal tax returns.
2 years personal tax assessment notices.
2 years company / partnership / trust tax returns.
2 years financial statements (if available).
We, at No Deposit First Homes, understand that buying your first home is a big decision. We want to help you through the entire process starting with your first home application.
Our expert staff are always eager to answer your questions and take you through the process step by step.
Call us at >>> 0499 136 136 today for more advice on buying your first home with No Deposit.