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You’ve saved up, despite the low interest rates making it more than a challenge, and now you are ready to take the next step in getting your dream house. Many first time buyers don’t realise that the next step in the process, your home loan application, can be just as important to your property goals as saving is.

Although the process is an important one, we feel that it doesn’t have to be like pulling teeth. So with that in mind, here are some tips to make the most out of your first home loan application.

First off, before you even begin looking at places to buy, you need to make sure you have settled on a budget that gives you a clear indication on what you can spend per month on your loan. Contacting a mortgage broker is a great way to get an independent assessment that will show what you can reasonably be expected to borrow, and even get you pre-approved before you’ve even begun your property hunt.

To make sure your assessment goes smoothly, you have to make sure that you include all your income statements, wage slips and any other information about assets or liabilities you have, like credit cards or personal loans, and even your PAYG and tax returns. Don’t skimp on anything, even if it’s a gift saving’s account set up by your parents. If you provide a complete picture of your financial security, the easier it will be for your broker to do their job, and get you the loan you want.

The loan provider will take all this information, and perform a detailed check on your credit history to see how punctual you are when it comes to paying your bills, or if you have any credit black marks in your credit history.

Some people might be embarrassed, or think that they can hide credit faux pas, but ensuring that your broker or bank gets all the info they need, helps them to give you a realistic figure, and they might even be able to help guide you in the right direction if you have a credit issue that needs solving.

When and if you get home loan offers, it’s equally important to make sure that you can afford the payments, seeing as there is a possibility that a loan offer might require payment that falls outside your initial budget.

In the end, getting your home loan approved doesn’t have to be the excruciating process most make it out to be. If you want any more information regarding a home loan application, or just need some info, don’t hesitate to contact us.