Today’s guest post comes from Bill Gordon, who is an Australian freelance writer. This is an informative piece about successfully navigating through the home loan process.
Here’s More about Bill:
Bill Gordon is a freelance writer and marketing expert form Melbourne AU, who likes writing articles that cover marketing, finance and business related topics. He has written numerous articles and contributed to several other blogs. When he’s not writing, he enjoy spending time with his wife and riding bikes on the coast.
How to Successfully Navigate the Process of Getting a Home Loan
Having your own home is a real dream come true. A flat or a house of your own reflects your independence and success, and it also seems to be one constant in the future to come, while everything else will probably change (career, health, children growing up…). However, to purchase the perfect home, serious funding is needed, and this is where home loans come in. Here is what you need to know in order to get one approved as soon as possible.
No matter how much you have managed to save so far, just continue doing so. This is the time when you can expect lots of delays and unexpected expenses. Therefore, try to put some money aside whenever you can as it will pay off sooner than you realize.
Create a Good Credit Score
If you wish to appear credible and reliable, you need to have an excellent credit score. One of the useful credit score strategies is to naturally get rid of all the debts you have, with a common culprit being credit cards. You are soon going to be burdened with a mortgage, and you definitely don’t need some extra expenses each month, so you’d want to tackle those debts first before proceeding with any applications.
When you decide to become a homeowner, you can forget about a career change. At least until you have your mortgage approved – afterwards you can do as you please. Despite the fact that moving to a new job could mean you would get a promotion sooner and a higher salary, too, all this sounds too risky to a lender. They would rather see you with a regular monthly income which you’ve been receiving for at least a year.
No New Debts
You are about to become seriously indebted, so this is no time for any other debts to be made. It’s all about setting the priorities straight, and at this moment, nothing should be more important than getting your own home.
Be (Very) Patient
You shall see as you begin the process that there are a lot of documents you will have to prepare (and copy) in order to obtain the loan. Moreover, you can expect your lender to ask for some additional documentation, which you should provide promptly if you are serious about the business. Also, no one can tell with absolute certainty when your loan is going to be approved.
Still, if you find waiting for results particularly stressful, there is one thing you could do to save you from the misery. Taking advantage of the services provided by certain lenders, you’re able to track the status of your application in real time with the aid of an online tracker. With this tool there will be no need to constantly call your lender and ask about the current state as you can see everything on the website.
Find the Right Lender
This seems to be the best time to buy real estate, as the statistics have shown, the previous year ended with plenty of homes at an agreeable price. The Australian market is swarming with different lenders and you will have to do proper research in order to find the one with the best conditions for your situation. Always interview a few of them before making the final decision.
Indeed, it is advisable to get a pre-approval before officially applying. The point of getting a pre-approval is that you will come across as a serious buyer. Hence, you could negotiate a good price more easily.
Set the Right Figure
Finally, no matter how great an amount of money you are able to borrow, don’t let it misguide you. Unless you absolutely have to take out the maximum loan, it’s better to ask for a smaller sum. Namely, your regular monthly income and expenses are going to differ in the upcoming years, so it’s best to play it safe this time.
Admittedly, a home loan application process is a period filled with highs and lows, but with some helpful advice, you should be able to make it as short and as successful as possible.
If you’re interested in writing a guest post for The Money Mix, check out our guest post guidelines.
Note: The Money Mix hosts guest posts as a way to further diversify and amplify the personal finance community. We don’t agree with everything written in our guest posts, nor do we endorse the author or ideas expressed in the post.
The Money Mix is a resource dedicated to money and personal finance. Our mission is to create a healthy conversation about strategies to make and save money, build wealth and how to achieve life-changing goals through taking control of your life.