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7 Tips For Getting a Home Loan

7 tips for getting a home loan

Getting a home loan – especially the right home loan – isn’t always easy. Lenders often have very exacting approval criteria, and as a borrower, you may not always know what is required. If you are thinking of applying for a home loan – whether you are a first home buyer or you are looking to refinance your current loan – here are our top seven tips for finding the right loan (and getting approved).

Use a mortgage calculator

The key to finding a successful home loan is finding one that you can afford. Not being able to make ends meet can be incredibly stressful, so avoid taking on a mortgage you can’t afford. Use our mortgage calculator to work out how much you can afford to pay back each month, and how much you can afford to borrow overall. Create a budget to ensure your loan repayments are affordable.

Improve your credit rating

When you apply for a home loan, the lender will assess your credit history to determine whether you are eligible for a loan, how much you are eligible you to borrow, and the interest rate you will pay on your loan. Applicants with a good credit history, a good savings record, and a steady income will find it much easier to get approved for a loan. Apply for a copy of your credit file before you apply for a loan, have any mistakes corrected and always deal with credit responsibly. You may also like to read this article that talks about how applying for loans can impact your credit rating.

Save a deposit

Try to save a substantial deposit before applying for a home loan. While some lenders accept deposits of 5-10%, aim to save 20% of the property price. This will make lenders look on your application more favourably, and it should make your loan more affordable in the short-term and the long-term. If you would like help with a savings plan you might like to talk to the team at Plan Me.

Get your financial documents in order

Applying for a home loan involves a lot of paperwork. You will need to supply a range of financial documents, so be sure to get all your paperwork in order so you are prepared for the application process. If you apply without the right paperwork, your home loan could be rejected or delayed. You may also like to read this article that talks what information you might need.

Compare home loan options

There are dozens of lenders and hundreds of home loans on the Australian market, which makes comparing all your options very time-consuming. Research all your options, compare various home loans and lenders, and read the small print. Use the comparison rate to compare home loans, and use a mortgage calculator to find the best option for you.

Understand your options

There are various types of home loans available. There are fixed rate, variable rate and split home loans, there are honeymoon loans and investor loans, there are construction loans and low-doc loans, there are bridging loans and reverse mortgages. If you want to find the right home loan, you will need to do some research to find out what each loan offers. You can read more about the different types of home loans here.

Find a mortgage broker

Using a mortgage broker can make the above steps much easier – and faster. A mortgage broker can advise you on what kind of loan you need and how much you can afford to borrow, they can search for loans for you, they can help you with the complicated application process, and they can liaise with your conveyancer, real estate agent and your lender. Finding the right mortgage broker can make a stressful process much less stressful! Lend Me mortgage brokers will not charge a fee to do this for you, they get paid directly from the bank at no cost to you. Why do the hard work? You may also like to read this article that talks about how a mortgage broker can help you.

Lend Me – Home Loan Brokers – Mortgage Brokers – Perth, Western Australia

How we've helped our clients...

"Starting up a new business isn’t easy, with so many things to think about it can be quite a stressful process. With the services of Lend Me Asset Finance and Locate Me, they have really helped to take this stress away in the way of meeting me on my job sites to sign documents and dealing directly with the Car Dealers, Bobcat Dealers and even my accountant.

The guys at Lend Me really do take the time to listen to what you are after and work in to suit you and make the transaction so simple and convenient, I can’t thank them enough! I’ve also recommended their services to 3 friends already and have only had good feedback. Lend Me have certainly gained a client for life! Reece"

"Hi there, Saturday just gone, I picked up my dream car, a 2013 black lancer LX.

I'd like to take this chance to say Lend Me Car Loan customer service was by the far the best I have ever received. What I thought was going to be tough work turned out to be the opposite. The process easy, simple and quick for me, she did the hard yards... I will be recommending friends and family... Thanks again! Regards, Stephanie"

I just wanted to say thank you... This has been the smoothest process. You and the other girls I dealt with at Lend Me Home Loans were so friendly and so efficient with everything, I felt like I was the only customer you were dealing with.

I will definitely be raving on to loads of people about Lend Me and the great service you provide.

I am stoked, this will take so much pressure off and will seriously change our lives... we can actually get ahead on payments and start saving some more money.

Thanks again, Kath :)

"Emily & I just want to take this opportunity to say a very big thank you for seeing us through our first home purchase and home loan, you have been a massive help not to mention getting us out of a sticky situation. We will definitely be in touch in the near future and will refer/recommend you to our family & friends if looking out for a friendly, helpful and reliable mortgage broker.

Take care and speak soon. Matt & Emily" 

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