Checklist
Lenders assess your loan based on 3 key areas
1. Your ability to meet the repayments - your income
2. Your credit rating - savings and repayment history
3. The property securing the loan and the amount of equity in the property
Your Ability to meet your repayments
What a lender needs will vary depending upon your circumstances. If you work for someone else it might be as simple as a copy of your last payslip or a letter form your boss. If you are self employed they will usually want to look at your last 2 years tax returns to check that you are earning consistant income.
Your Credit Rating
Most lenders do a computerised credit reference check to make sure you are not bankrupt or have a history of defaulting or being late on other loans. They will also want to check (by looking at loan statements) that you have been making your payments on time for any home loan that you are looking to re-finance.
The Property securing the loan
The property that secures the loan provides the lender with security in the event that you don't make your repayments on the loan. The type of property, the location of it and how much equity you have in it helps determines the risk that the lender is taking in lending you the money.
What to have ready
1. A list of your assets and liabilities (loans) and what you are paying each month in repayments
2. Details of your income - be precise and if you are self employed have your last 2 years profit and loss statements handy
3. If re-financing have a copy of your latest loan statements
4. Knowledge of your credit rating - know if you have an adverse credit report (Veda Advantage)
5. Details of the proerty you are using to secure your home loan - type of property, postcode, value (if you already own the property be realistic about the value)
6. Details of other income sources such as rental, investment or social security payments
7. Work out what costs you need to cover to secure your property (stamp duty, mortgage insurance, solictors fees)- see our calculators for help
| Purchase Price of Home |
$..................... |
| Add Stamp Duty |
$.................... |
|
Mortgage Insurance (if applicable) |
$.................... |
| Your Legal Fees |
$....................
|