Applying for a home loan is a bit like applying for a new job. The better your application is presented and the more organised you are, the greater your chances of success are in obtaining a home loan.
So how do you improve your chances of getting approved for a home loan? Here are a few tips SMART have put together to help you.
Have a regular savings history: Obviously the bigger the deposit, the easier it may be for you to secure a loan, However a bigger deposit doesn’t always help get you a loan. Banks or lenders also want to see evidence of regular contributions to your savings, not just a one off payment to your savings account, this shows you can make the necessary regular repayments to a home loan.
Have an expense budget completed: As well as what you save, banks and lending companies also like to know what you regularly spend, so put together a budget. Make sure it’s comprehensive and realistic, and updated on a regular basis, this helps a lender when making an assessment.
Check your credit history: A bank or lender will check your credit history when you apply for a home loan, so you should check it out first. That way you can correct any errors, plus have a good explanation ready for any discrepancies that may pop up. Talk to SMART if you have any items on your credit report, we might be able to help you get these removed.
Pay down personal loans: As well as boosting your savings, decrease any personal loans you have. Also by reducing the credit limit on any loans and credit cards as you repay them is good habit to get into. This helps by reducing your overall position of lending
Homeownership is a fantastic thing to strive for, it’s the Kiwi Dream to own your own home.
So make yourself financially presentable, get yourself organised, and call your SMART financial adviser to arrange a suitable time to visit and discuss your options for a home loan. Good luck!