Your Guide to Managing Home Loan Paperwork
The idea of purchasing a property is daunting enough whether it is your first home or another addition to your investment portfolio. Add in the idea of the mountain of paperwork that goes along with obtaining a home loan and it may seem impossible!
The paperwork lenders require can be significant, and it’s important to provide the correct documentation and completed checklists. Sending your home loan application with missing or incorrect documents can result in your loan application going back and forth without result or even derail the application altogether.
After evaluating the risk involved with repaying a loan, lenders will decide whether or not your application will move forward. While requirements may vary from lender to lender, there are some key criteria commonly used to assess the risk of a client.
Income
The first and foremost area your lender will look into is how much you earn, as well as how stable your earnings are. They want to make sure you can consistently make repayments to your loan and are maintaining continuous employment. Bank statements, payslips, group certificates, and tax returns are among the documents required to give evidence of your income.
Savings
Although the overall number in your bank account is taken into consideration, lenders look at whether you are capable of saving over the long term. A bank account statement showing regular deposits is an example of a required document. In the lead-up to applying for a home loan, think twice about buying your daily coffee or eating out multiple times a week. Instead, deposit this money into your savings account. It is not uncommon for applications to be rejected if a savings history is deemed not to be genuine, for example, if the majority of savings have been given as a gift.
Other income/assets
To better determine your financial situation, lenders want to see proof of your assets and liabilities, including savings, shareholdings, and motor vehicles or an additional form of income. The Hrkac Group team can advise you on the specific paperwork requirements, as each lender can differ.
Credit
In order to determine that you have been able to make any previous credit card repayments and bill payments, lenders will look at copies of credit card and personal loan statements. Keep in mind that it’s not only just your credit card, home loan, or personal loan repayments they’ll look at, but also any mobile phone and utility bills.
Buying a home is a big step in everyone’s lives and there are certainly many hoops to jump through along the way. The team of Mortgage Brokers at The Hrkac Group aims to make the process of gathering all the necessary paperwork and applying for a home loan as simple and stress-free as possible.
Call us today to arrange an appointment.
Today’s Home Loan market is a complex proposition for potential borrowers, from First Home Buyers through to experienced property investors. Engaging a Mortgage Broker to assist you can make all the difference in being able to find a suitable loan from a maze of lenders, with complex lending rules and regulations currently in place. Mortgage brokers can do all of the leg work for you, including checking your borrowing capacity and ensuring you meet the lending criteria, of dozens of lenders, and you choose who you want to deal with.
It is important to note that a Mortgage Broker is required to work in your best interests by law, and consumers have legal protection if a Broker doesn’t do so. Hrkac Group Mortgage Brokers don’t charge any fees to our clients. If we do our job properly and locate a suitable loan for our clients, the Lenders will pay a commission to us. The commission isn’t added to your loan amount or interest rate, so it is a completely free, ethical and professional service we provide.
Why use The Hrkac Group’s Mortgage Brokers
1) We’re thorough
We discuss and analyse your existing situation, your home loan needs and requirements, and obtain all necessary information pertaining to your home loan application.
2) We make it simple
We explain the types of home loans available to you from a range of banks and specialist finance companies. Such as:
- Home Loans
- Investment Home Loans
- Vehicle & Equipment Loans
- Small Business Loan
- Refinances
- Debt Consolidations
3) Specialised & personalised service
Based on the information provided by you, and utilising specialist home loan software, we match your home loan requirements to a selection of home loan products offered by our panel of lenders.
4) Overview of costs
We provide an overview of your ‘Purchase Budget’ incorporating the relevant costs associated with your home loan application in writing.
5) In-depth view of products
We provide an in-depth overview of the home loan product or products you select, in writing.
6) We do the tricky parts
We complete and package your home loan application and deliver it to the lender’s assessment team on your behalf.
7) We dot the i’s and cross the t’s
We act as an intermediary between you and the lender, negotiating the terms and conditions of your loan. We will also answer any questions the lender’s assessment team may have, on your behalf.
8) Communicate with all parties
We liaise with your solicitor, real estate agent accountant, and any other related parties to ensure a smooth and timely settlement.
9) Going the extra step
We assist with future home loan requirements, whether you wish to check, change, or top-up your loan, or renegotiate your current home loan interest rate with your existing lender.
10) Keeping you updated
We act as a valuable information service beyond the settlement of your loan by providing you with relevant information on the home loan market, updates on products, and special offers that may be of interest to you.
Take control of your financial future by meeting with the best Mortgage Brokers in Geelong at The Hrkac Group. Make an appointment today via Contact Us, or phone (03) 5224 2366.
Geelong Finance brokers and Conveyancing teams at The Hrkac Group were pleased with Interest Rate Reduction announcement.
The Geelong Finance and Conveyancing team is pleased that just moments after the Reserve Bank Australia (RBA) announced it would cut the official cash rate by 25 basis points, two of the majors have announced they will pass on the full rate cut to borrowers.
In an announcement on its Twitter feed, National Australia Bank said it would cut its standard variable rate by 25 basis points. CBA has also just announced that they are passing on the full 0.25% reduction. The rate cut takes NAB’s SVR to 6.13 percent and CBA’s to 6.15 percent. More are expected to follow.
This is the first time in a long time that any of the majors have chosen to pass on the RBA’s rate cut in full.
Contact Us now at The Hrkac Group Finance Broker team to review your business and personal loans and ensure you are benefiting from the low official cash rate.
