- Posted 24 Nov
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Buying a house will probably be the biggest investment you will make in your life. Taking out a mortgage and putting that down payment on the table is an enormous financial decision. It can also be an emotional one, if your home buying involves a spouse or growing family to consider.
Many people put off home finance for the simple reason that they don’t want to go through the hurdles of the application process. This can often be difficult and complicated.
To help you navigate this area, here’s a basic outline of the process:
1. Get your basic financial “house” in order
Frist, you really need to determine if you can even afford to buy a home. How much debt are you currently carrying? What other investments, besides home ownership, do you have coming up in the near future? Things like university financing, starting a family, buying a new car, etc are all things to consider in evaluating your financial portfolio. Don’t forget your current spending habits as well. A review of your budget with a financial advisor will help to determine where you are at.
2. The basic application
The first piece of paperwork you’ll have to fill out is a short application form. Your mortgage broker will typically provide this to you. The form will provide the broker with some basic details of your situation, and will help to give the broker an understanding of what you’ll need to provide, as well as where you stand financially.
Complete this form honestly, and make sure to sign and accept the brokerage agreement. This allows the broker to be able to act on your behalf in terms of arranging finance for you.
3. Basic paperwork and documents
Before you return the full application form, you’ll need to provide some supporting documents. If they are accurate, and you provide them all at once, it will save you a lot of time and energy down the line.
- ID: You need to show that you are a real person applying for this mortgage. The ID can only be one of the following: Driver’s license, Passport, state issued ID card, Medicare card or Bank ATM.
- Income Evidence: You need to show that you are gainfully employed, and meet income requirements. For this, you’ll have to provide two of your most recent pay slips.
- Deposit Evidence: Your mortgage broker needs to see that you have money in the bank. For this, you’ll need to provide your last 3 bank statements or your online banking for three months. You may also have to provide at least one hard copy of a statement sent via mail. (If you’re using a Guarantor to secure your mortgage, you will not have to provide these bank statements)
- Debt: You’ll also need to show what kind of debt you’re carrying. Have you’re most recent credit card statements ready to submit, as well as any car loan or other debt statements.
4. After submitting paperwork
Once you’ve gathered and submitted all your paperwork, the hardest part is really over! Your mortgage broker can now assess your portfolio and recommend lenders that can offer the best home loan for your needs.
The home loan application process takes some time, but if you know what to expect and have your paperwork ready, there will be no surprises and you’ll be ready to start looking for your home. Don’t be intimidated by the process. It just takes some preparation, and your home loan will be on its way!
If you need help with finding the right mortgage for your needs, get in touch with our home loan experts today. Contact our team on 1300 735 557 now.