What information do I need to get together to apply for a home loan?
Here are a few things you should know about before applying for a home loan:
The 100 point check
If you are going to ask for a loan for the first time then it means that you have no existing relationship with the lender you are about to talk to. So it would be wise to bring along documents that would accurately identify you for the lender’s sake. If you’re going to ask for a loan your identification should amount to 100 points. A driver’s license is about 40 points, a credit card – 25 points, and a birth certificate is about 70 points. So if you could bring all of them with you on your way to the lender then your chances of having your loan approved will improve significantly. But remember to bring only original documents.
You should also be aware of what lenders usually ask and you should be able to provide them with the appropriate answers. Here are some of the questions that lenders often ask their clients:
1. What is your capacity to make repayments?
2. Do you consider yourself a good financial risk?
3. What is your collateral? What this means is that, is the property that you are purchasing enough for the amount of money you are borrowing?
4. What assets do you currently have?
You will probably be also asked about certain details such as, if you have dependent children, the length of your stay at your current residence, the things you own and owe, details of your accountant, details of your personal insurance and your credit card details.
Here is a list of things you should bring to your lender depending on your situation:
For Basic Identification:
Drivers license numbers for all applicants
For PAYG applicants:
- Latest 2 pay slips for ALL applicants
Latest group certificate or tax return for ALL applicants
For Pre approval / Purchases:
- First 2 pages of the contract of sale (not required for pre approval)
- Latest 3 months savings statements if lenders mortgage insurance is applicable
Evidence of deposit
For those looking to Refinance:
- latest 6 months statements of your current home loan
- latest 6 months statements for any personal loans being paid out
- latest 3 months statements for any credit cards being paid out
- Recent council and water rates notices