Published at: 6/21/2016 3:29:00 PM
It’s easy to be the boss of your lender’s paperwork when you know what to expect.
There’s a lot riding on your home loan application, and the more prepared you are, the more likely you’ll receive a thumbs up from a lender.
Gather key details
Prior preparation is essential. Before you put pen to paper, gather some necessary paperwork. It’s a lot easier to complete a loan application when you have all the details on hand.
You’ll need at least three consecutive recent payslips plus a copy of your latest PAYG Summary or Notice of Assessment from the Tax Office. If you have other income, like Centrelink payments, grab copies of bank statements showing the payments.
You’ll also need evidence of your deposit. Copies of bank statements going back several months will show consistent savings.
Finally, have a copy of your contract of sale or builder’s contract ready to attach to your application.
Time to get started
Okay, you’re ready to start filling out your home loan application form.
Once you’ve completed personal details like your name, date of birth, occupation and address, things quickly turn to your loan. You’ll be asked to nominate the home loan you want to use and the loan term – 25 years is standard but a shorter term means a lower overall interest cost.
Importantly, you’ll need to state the amount you’d like to borrow and how much money you are contributing to the purchase by way of personal savings. You’ll need to provide some financial details like your income (that’s where those payslips come in handy) and an estimate of your living costs.
What’s next? Information about your ‘financial position’. This is where you list your assets (items of value you own) as well as your liabilities (debts you owe).
Here’s a tip. When it comes to credit card details, lenders ask you to state the total limit on each card (this is what you could potentially rack up in debt even if the card balance is zero). So it can pay to cancel any unused cards before filling out your loan application.
Why all the numbers?
Lenders have a legal responsibility to make sure you can comfortably handle your home loan. By providing plenty of details about your financial position, your lender can determine the loan size that you can afford to repay each month and still enjoy a decent lifestyle.
Now we’re onto the exciting part. The loan application form will ask about the security for your loan – that’s your new home. So you get to supply details in writing about your first home, and that makes it feel like it’s yours already.
Have your legal eagle lined up
Nearly there now. As you reach the end of your application, you’ll be asked to provide details of your solicitor or conveyancer. Having your legal professional lined up before you’re ready to apply for a loan will speed up the paperwork.
And that’s really all there is to it. Once you’ve signed and dated the application it’s a good idea to keep a copy of the paperwork.
Or there is a simpler option.
Contact your ME mobile banking manager and we’ll fill out the application for you. Too easy.
Terms, conditions, fees and charges apply. Applications are subject to credit approval