Published at: 6/21/2016 3:28:58 PM
A few simple steps can help your loan application over the line.
Buying a first home is all about getting your ducks in a row – follow our 4-point checklist to get off to a flying start.
1. Check your credit record
Lenders will check your credit record as part of your home loan application – it shows how well you’ve managed money in the past so it’s worth taking a look at your credit record before your lender does. This lets you fix up any errors or catch up on outstanding payments before you apply for a loan.
2.Trim down other debts
At ME we want your first home to be an enjoyable experience – we sum it up as ‘Get the house. Keep the life’. That’s why it’s worth aiming to pay down other debts like a car loan or personal loan before you apply for a home loan. Sure, that can be difficult when you’re saving a deposit but it means you are not overloading yourself financially – and that matters to us.
3. Lower your credit card limit
If there’s no money owing on your credit card, give yourself a pat on the back. But bear in mind, when you apply for a home loan lenders look at the maximum limit on your card - not the outstanding balance. Boost your chance of loan approval by getting in touch with the card issuer to request a lower limit.
4. Arrange conditional loan approval
Here’s a great idea. Don’t wait until you’ve found your ideal home to apply for a loan – talk to your ME Mobile Bank Manager about conditional approval. This means you’re good to go for a loan when you find an appropriate property you’re interested in, and it gives you extra bargaining power during price negotiations. If you’re buying at auction, having conditional approval puts an upper limit on the price you can afford and lets you bid with confidence knowing your finances are sorted. There is limit to how long conditional approval lasts at ME its 90 days, renewing it is an easy process.
Need more information?
Your ME Mobile Bank Manager is here to help you enjoy a hassle-free home buying process. Contact us on 13 15 63 if there is anything you are unsure of, or take a look at our FAQs.
Want to know more? - find out about which home loan could be right for you here.