How to Draft a Successful Home Loan Application
When you’re on the quest to buy a property, the last thing you want throwing a spanner in the works is a home loan rejection. In extreme cases, having your home loan rejected can even lead to further rejections. Lenders will see the first rejection on your record when you apply again.
There are many reasons a home loan application can be rejected, and some are harder to prevent than others. A bad or damaged credit history can block your home loan from being accepted, as can unstable employment.
However, some home loans are rejected for far simpler things, like incorrect details. You can’t guarantee a home loan approval, but with some diligence and smart preparation, you can maximise the likelihood that your application will be accepted:
Different lenders have different requirements when it comes to credit rating, but of course, the general consensus is that your credit rating should be strong. You can check your credit rating online, but the best thing to do is ask your lender before you apply and risk a rejection.
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Income and personal details
Like your credit rating, each lender will specify their own requirements when it comes to your income. This can also vary from loan to loan.
In addition to your income details, getting your personal details right is important in maximising your application’s chances. Any incorrect information or unspecified details can lead to a rejection (and an easily preventable one at that).
Lenders won’t lend to you if they don’t think you’ll be able to pay them back. Paying back a particular percentage of your pre-existing loans might be advisable before applying for a new one.
If any action is required, your lender can advise you on what to do. Mortgage House offer common solutions like debt consolidation and offset loans that may be useful in these situations.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for advice about the best options for you when it comes to your mortgage. We’re experts in home loans, and we can help make sure your home loan application is as solid as can be.
The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.