6 things you should do to get your home loan approved quickly

Applying for a home loan can be stressful and time-consuming. At AFM, we aim to make the process as hassle-free as possible. Whether you use a broker or deal with us directly, there a few things you can do to make the process easier and quicker.

Have a stable employment history

One of the main things lenders look for when approving a home loan is consistency of employment. Every lender has slightly different requirements, but If you can show that you have been with the same employer for a long period of time or have a consistent employment history, you will increase your chances of getting your Home loan approved.

Minimise your debt

Ensure you keep any existing loans and expenses to a minimum. Mortgage lenders will see every liability you have, including credit cards, personal loans, store cards and any expenses. Minimising your debt will increase your chances of getting your application approved.

Establish a strong savings and repayment history

Lenders will want to see that you can save money and pay your existing commitments. Having a strong savings and repayment history will increase your chances of having your mortgage application approved. You can demonstrate this by establishing a regular savings pattern. It certainly works in your favour to show that you can save money while also meeting your current commitments with no overdue payments.

Gather your documentation

When it comes to supporting documentation, you will be required to establish your identity and your financial situation.

You will need to supply documentation that meets the 100-point proof of identity requirement. To do this, have the following ready:

  • Your driver’s licence
  • Your current passport, birth or citizenship certificates
  • If your documents are still in your maiden name, provide a copy of your marriage certificate
  • Other documents that will be useful include:
    • Medicare card
    • Credit card
    • ATM/debit card
    • Council rates notice
    • Pensioner concession card
    • Health care card
    • Tertiary student ID card

Evidence of your financial situation should ideally include your most recent 2 or 3 payslips and PAYE summary. Include bank statements, rate notices, letters of employment, rental income statements, personal or business tax returns and proof of share dividends or interest earned.

Provide any documents that show income earned to help you prove your financial situation. The sooner you provide these documents and more thorough they are, the sooner your broker can provide you with suitable loans options and ultimately pre-approval from your lender.

Have a clear understanding of your goal

Obviously your goal is to purchase a property, but think of this purchase as far as down the road as possible. What are your short and long-term goals?

Will you be making renovations in the future? Then you may need a loan with flexible terms. Do you think you might sell the property after 3 years? You’ll need to take this into consideration if you are looking at getting a fixed rate mortgage.

Ask questions. Prepare a list of queries about the structure of the loan, how it works, whether a new product will do the same things as the previous one. Clarify the terms and conditions that you are not sure of. Find out all your options—your mortgage adviser’s knowledge and experience can help you make an informed decision.

If you have a clear understanding of your goal, it will be easier to determine the most suitable product and right strategy for you.

Be open and honest

If you don’t say it, your broker won’t know it until your application is processed. Some people think they’ll be better off hiding or evading uncomfortable facts. It might be convenient to forget about the default years back or not to mention about a HECS or HELP debt. If anything, not mentioning these things can hinder the mortgage approval process.

Everything is like to come out in the credit process. To get you a suitable loan, you need to give a comprehensive picture of your situation as possible. So even if you think it’s wrong answer, say it anyway. Let your mortgage specialist decide.

It takes team work to get that home loan you always wanted. Let AFM help you streamline the process and find the ideal solution. Call 134afm or complete our contact form and one of our lending specialists will get back to you.