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How to get approved faster for a home loan

The homeownership dream requires a lot of hard work, no matter what phase you’re in. And unfortunately, as time goes on, this is proving to become more difficult for those finally entering the market.

When you are ready to become a homeowner, you want the process to be as smooth and as quick as possible, which isn’t always easy to turn into a reality.

Luckily, we’re here to help. Here is your guide preparing your application so you have the greatest chances of getting fast approval for your loan.

Be aware of your credit history

Any bad marks on your credit history can slow down the process or even result in having your application rejected. Before collating all of your documentation, checking your credit history and addressing any issues is critical.

Know how much you need for a house deposit

Lenders will always view your application more favourably if you have a larger deposit on hand. You should aim to have at least 20 per cent saved, as any less will require you to get lenders mortgage insurance.

Have your paperwork organised

There is a lot of red tape involved in applying for a home loan and it can be frustrating to be told that you are missing a form of documentation while you are waiting for a decision. The paperwork you should have ready and completed before applying includes:

  • Identification documents: You will need at least 100 points of identification with birth certificates and passports weighted the heaviest at 70 points each.
  • Proof of income: You need to be able to prove your income, which is easy when you are a PAYG employee who receives payslips. If you are casual or part-time you will need your last financial year’s notice of assessment from the ATO and if you are on multiple income streams you will need proof for each of them.
  • Assets and liabilities: Lenders will need the full picture of your financial health so you need to show all of your assets (properties, vehicles, term deposits, savings) and liabilities (debt, ongoing payments etc).

If this is your first property, you will also need to have the First Home Owner Grant form completed. If you are applying for a loan with a guarantor, they will need to provide all of the same documentation as above.

If you have already taken out insurance or had an evaluation done on the property, this paperwork will be required as well.

Eliminate debt as much as possible

As you are assembling your documentation and researching your credit history, you might be able to tell by yourself if there are going to be concerns over ongoing or outstanding debt.

Always try to have this paid down as much as possible before applying.

Don’t over-apply for home loans

It can be tempting to apply for many home loans at once in the hope of getting the good news sooner, but this can actually hinder your hopes. Every time you lodge an application it is marked on your credit history and too many requests for credit will be viewed poorly by your lender.

SDK Finance home loans will help you reach your dream sooner through a streamlined application approach through our strong network of reputable lenders.

Need help getting started? Contact SDK Finance on 0438 205 886 or by emailing us at stefan@sdkfinance.com.au for helpful guidance.

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