Home Loan Approval Tips.
Applying for a home loan is a big step, and it’s not always straightforward.
Being prepared is one of the key aspects of applying for a home or investment property loan. Having accurate up to date information helps the approval process run smoothly. Banks and lenders require detailed information from you to enable them to assess your position and determine that you are a good credit risk.
To help make it simple and improve your chances of success, here is a handy list of the documents you are likely to need when you meet with Paul Gilhooly your finance broker .
Identity
You will need two of the following three:
- passport;
- driver’s licence; and
- photo identification, such as a university identification card or proof of age card.
If you don’t have two of these, you can also provide one, plus a birth certificate, Medicare card, citizenship certificate or similar documentation.
Income
If you are employed, this is a fairly easy. Provide your two most recent PAYG payslips, showing Year to Date income of at least three months. If your payslips don’t list your YTD income, please provide previous payslips or your most recent PAYG Payment summary.
If you are self-employed, please provide your last two years individual and business tax returns( if a company or partnership), your most recent ATO assessment notice and the business’s financial documents for the past two years.
Any other income you receive will also need to be documented. For example, if you own an investment property, provide a current lease, rental statement or a letter from the leasing agent. If you receive any government benefits, bring a statement from Centrelink. Make sure the documents provided are the latest available.
Assets
You will need to prove your savings with six months bank statements. Plus, provide details and values of any other assets, such as cars, stock, term deposits and property.
Liabilities
You will need current statements for your credit cards, store cards personal and/or car loans.
Are you refinancing?
If you are refinancing a loan, you will need the past six months’ loan statements and the current payout figure including any exit fees.
Of course, depending on your personal circumstances and the requirements of your individual lender, the documentation you need may differ. Luckily, Paul Gilhooly, your local MFAA Approved finance broker can tell you exactly what to provide and take the confusion out of applying for a home loan. Contact Paul for individual assistance.
Alise Harper says
My husband and I are wanting to buy our first house but will need a loan. I really enjoyed reading through the article learning what I will need to have accessible during the home loan process. Thank you for the advice about making sure that our paystubs have the year to date income on them and having at least the last three months available just in case they needed more information. I will make sure I have all my paperwork ready and available to make the process go more smoothly. Thanks for all the great tips!
Paul Gilhooly says
Dear Alise, Thanks very much for your comment, I am happy the information was useful.