Purchasing your home is arguably one of the most important purchases you can make. Accordingly, it is best to take certain steps to ensure that your home loan application is processed properly. When looking at your application, the banks take several matters into consideration. That said, being able to demonstrate stability and consistency is paramount in terms of showing that you can properly service the loan. However, sometimes this is easier said than done. When applying for a loan, be sure to consider the following.
1) If you have been at of the work game for a long period of time, and thinking about going back to work, waiting a number of months before applying for a home loan may be beneficial. This will assist you in showing stability and consistency in work.
2) Consistency in work does not mean working the same employer for 20 years. That said, if you are thinking about applying for a mortgage, you may benefit from delaying moving jobs, were possible. In the event that you do change jobs, be aware that some lenders require at least two pay slips with the one employer.
3) It is also important to note that if you are currently finishing a probationary period in your new job, the lender may hold off on approving your loan until you complete your probation.
4) Working for yourself is a dream for many. But, for those that do, being able to show a stable income can prove problematic. Accountants can help self-employed workers assemble financial statements, which are essential when applying for a loan.
5) Some lenders may take into consideration overtime payments when assessing your income. Accordingly, a mortgage broker can advise you on which lenders will take those extra earnings into consideration when assessing your serviceability.
Be sure to read our other buyer guides for more tips and tricks.
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