How First Home Buyers Can Prepare For A Loan

by John Pierre Saliba, October 20, 2016

Owning your own home is a dream come true for many Australians. However, as a first home buyer, the process can be confusing and overwhelming. The first step you have to do is to sort out your finances. Like most first home buyers in Australia, you most likely need to take out a loan on your home. Applying for a loan is very similar to applying for a job. The more you prepare for it, the smoother it’ll be.

Research Mortgages

If you know how much money you need to borrow, you can contact some lenders, including your own bank. You can also speak to your friends and family about their experiences with their lenders. In addition, you can enlist the help of an experienced mortgage broker, who can recommend loans that suit your needs.

Gather All Required Information

Most financial institutions offer checklists for first home buyers who are considering taking out a home loan. These checklists spell out all the required information when applying for a home loan. However, these requirements depend on various factors including your circumstances and the policies of the financial institution of your choice.

Most financial institutions will require certain documents including:

• Monthly statements or passbooks of your savings account(s) to make sure that you are financially stable.
• Personal identification documents for legal purposes. You usually need to provide multiple documents such as your passport, driver’s license, birth certificate and other photo ID.
• Pay slips or taxation assessment notices to prove that you have a stable income.
• Investment statement and other documents to show the details of your assets and liabilities.

Know Your Credit Rating

Your credit file contains information on your current and past credit activity including loan applications, missed payments, overdue payments, and bankruptcy details. Many lenders use this information to determine if you’re creditworthy.

BetterBlue Home Loans

Shop 1, 20-22 Station Street, Marrickville NSW 2204

PO Box 849 Marrickville NSW 2204
T 02 8321 9863 | M 0404 245 720 | F 02 8076 8609
W  www.betterblue.com.au 

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