Buying a new home means securing a mortgage for most homeowners. Knowing how to navigate through the process boosts your chances of getting the loan you need. Following a few simple tips makes you more appealing to the right lender.
Don’t be content to land any old mortgage. Find the best deal possible. Explore different packages through multiple lenders. Shop around to find the right match. If you do your homework diligently you’ll identify lenders who value your profile.
Use these 4 tips to secure a mortgage for your new home.
Be Cautious with Available Credit
Manage available credit responsibly to improve your chances of getting a mortgage. Don’t push yourself to the brink of your credit limits as doing so can scare off lenders but don’t build up too much available credit either. Some lenders may believe building up high amounts of available credit could lead to a debt-fueled spending frenzy. Establish a balance between growing available credit and not testing your credit limits. Debts should make up roughly half of your credit limits.
Your Ex May Haunt Your Financially
Ex partners may be out of sight and mind yet can wreck your chances at securing a mortgage. If you’ve applied for joint credit with someone make sure to remove them from your financial life immediately. Poor financial practices on their part can reflect on your joint accounts. Contact the financial institution where you established the joint account to request a disassociation notice. Don’t de-link only if your ex had a poor financial past. Future missed payments by your former partner can harm your credit future and may reduce your chances at getting a mortgage.
Get Your Credit Score in Order
Do periodic checks to make sure your credit score is accurate. Correct your credit score the moment you note errors after requesting the report. Even if you rarely use credit it doesn’t make you immune to errors. See if the error is on file with other agencies. Straighten out any mistakes to make your credit report accurate.
Some Lenders Won’t Prefer Your Business
Your credit score may be excellent and your financial past squeaky clean yet some lenders may not approve your mortgage. Don’t take it personally. Each institution has an ideal customer in mind. If you don’t fit their avatar you can’t force them to offer you a mortgage. Accept this and move on. The size of the loan, your existing debt, your credit rating and the money you’ve saved for a deposit are all factors that lenders take into account before deciding if you’re a good candidate. Although you may pass the test you’re not necessarily guaranteed to receive a mortgage loan. Don’t get stuck on one lender. Explore your options.
Since different lenders have different methods for finding the right candidates know that you’ll likely be turned down from time to time. Pick yourself up and keep looking. Eventually both parties will find a match and you can secure a mortgage for your home.
To receive home loans Australia buyers should contact these personal mortgage advisors.