• Angela Dye

Are you loan ready?

Updated: Jul 29

The time has come. You have decided to purchase a property! There are a few decisions that need to be made before you get the keys to your new adventure.

What will I buy? Where will I buy? And the big one – how will I pay for it?

These questions are answered when you decide whether you want an established home, a brand-new home, or if you’d like to build your own home. Part of the decision to buy may also include the reason you’re buying. Will it be for owner occupied purposes or will it be for investing? The “how will I pay for it?” is a little bit more difficult to answer as this will include engaging a bank or non-bank, to help with the financial side of your purchase.

So… are you Loan Ready?

Once you have made the decision to buy, you then need to follow the requirements of a bank so that you will be able to borrow enough funds to comfortably settle your purchase.

Do you know your serviceability, how much you can borrow, what deposit you require, the fees involved in applying for a home loan, and when you will be required to pay these?

Giving a bank the correct paperwork will stop the “to-ing and fro-ing” between yourself and the bank or broker, and your loan will become a one-touch deal. The correct paperwork makes it simple for everyone involved, allowing your loan to move quickly through the loan process. This part of the loan process can be very frustrating as a bank’s requirements may seem excessive to some borrowers. If we get the correct paperwork from the beginning, it will eliminate hold-ups.

The paperwork requirement will be different for each type of employment. Some of the questions you’ll be required to answer include — what type of employment you have, i.e. are you self-employed, PAYG, full-time, casual or part time? Do you get commission or have a lot of overtime?

You will also need to supply all your personal details along with specific identification. Most banks require a driver’s license, passport and Medicare card. We can also use birth certificates, marriage certificates and photo IDs from Centrelink as forms of ID.

Finally, three months’ worth of bank statements showing your everyday spending will also be required to substantiate your personal monthly budget, along with details of all your assets and liabilities. This type of information enables a bank to get a picture of who you are financially and whether they are prepared to take the risk of having you as a client.

If you choose to go it alone when applying for a home loan, the process can be frustrating. Working with professionals will remove the frustration and get you loan ready faster.

Ask Ang to guide you through the process of getting loan ready.

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