What to Expect When Applying for a Home Loan

When applying for a home loan, all lenders are likely to ask for the same information.

Who Are You?

If you’re approaching a lender for your first home loan or next home purchase, you’ll need to be ‘identified’. Lenders have their own process for identifying you and most are using technology for facial recognition and a photo ID from either a drivers licence or a passport.

Your lender will want to ascertain your:

capacity to repay,
financial risk,
adequate deposit saved
collateral (will the property you are buying be adequate security for the amount borrowed?)
what you owe (Liabilities) and own, (assets), and
credit file is in good shape

You will also be asked:

if you have dependent children,
how long you have lived at your current address, (3 years history is required)
your monthly living expenses
existing credit card and buy now pay later facility limits
how long you have been at your current employment, (3 years history is required)
superannuation statements to confirm current balance

Income verification:

if you employed as PAYG your two most recent pay slips,
documentation from your employer detailing income and length of employment
income statement (aka group certificate) and
Self employed applicants should provide their past two years’ tax returns and accountant’s details.

Have you had a change of name?

If you are a couple preparing to apply for your first home loan together it is equally important that all required documentation reflects your new marital status and/or any change of name.

Other supporting documents:

marriage Certificate
medicare card
driver licence
passport
birth certificate

For First Home Home Buyer

If you are a First Home Buyer, do you qualify for:

The Government Guarantee Schemes
First Home Owner Grants (FHOG)
Stamp Duty Concessions
Can your Family help with a Guarantor Loans
Is your deposit funds "Genuine Savings"

Loan APPROVAL

It is best to have your loan pre-approved before you make any offers.

Knowing that your finance is pre-approved lets you can focus on a price range and gives you full attention to the purchase.

Remember that a vendor may also accept a lower-than-advertised price, knowing that your finances are organised.

The vendor may want a quick and hassle-free sale. Once your loan is formally approved, we arrange mortgage documents for you to sign. We will go through the mortgage contract with you to ensure you understand the contents.

It is essential you contact your finance specialist to avoid common mistakes and discuss the home loan and purchase process BEFORE lodging any loan application documents.

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15+ Years Experience | MFAA Accredited | Brisbane Mortgage Broker