Be prepared before you leap! Top tips to help get your Home Loan approved!
Check out 5 great tips that will help you be in great shape to get your home loan pre-approved :
The first and most important step you will take during the mortgage process is to be honest with your mortgage adviser! I can’t help you if you don’t provide me with accurate information. It does not matter to me where you work or how much you make, what your bills are or how many credit cards you have. I just want to ensure that if I get you a mortgage that you will be able to afford it and still live happily.
Credit Rating - A clear credit rating indicates that you have repaid any previous debts and paid your bills on time - a home loan is a lot of money to lend, so showing a good history of paying your bills is favourable.
Pay down your debt - consolidating debt into one easy payment will not only help you budget but may also allow you to save - The Banks prefer this - they like to see that you can manage your repayments. Reducing your credit card limit may mean an increase on what you could borrow - it is the credit card limit that is expensed against your income - not what you owe .
Have stable Employment. If you can show you have stable employment, such as being with the same employer for at least 1 - 2 years or within the same industry, Banks will be much more willing to lend you money.
Boost Your Deposit. No matter which way you look at it, you need to get some savings underway - this gives banks some comfort that you are committed and can manage your expenses - so make a plan and stick to it!
Set A Savings Goal - set the amount you want to save and time frame . Complete a budget and see where you can either increase your income or decrease your expenses - sometimes its simply just keeping a track on your spending! Check out the Home Loan calculator to see how much your repayments would be
Make a Budget and be realistic Sorted.co.nz has a great online tool - making the budget is the easy part - sticking to it takes determination...its easier if you are saving with someone else, your savings will grow quicker and you will keep each other on task!
Join Kiwi -Saver and make regular contributions ... you can access all or some of your kiwi saver to buy your first home if you have contributed for 3 consecutive years or more (eligibility applies and subject to change)
The steps above do not guarantee that you will get home loan approved, but they are likely to increase your chances!