Why use a mortgage adviser - Are you mortgage ready?
Often we see clients who have managed to find their dream home or section and are ready to make the next step towards ownership, however they are un-prepared in terms of setting up their affairs to maximize their ability to obtain a mortgage.
Working toward home ownership for many is a far longer process than simply finding a property and whipping along to your local Loan Market branch to secure the finance.
There are many considerations lenders take into account when assessing your finance proposal, they all impact on the chances of acceptance or the terms of the mortgage.
It’s frustrating when we can’t get you a quick approval so we want to do everything in our power to help buyers understand what lenders need and get themselves mortgage conditioned. This groundwork can ensure when the time comes you are ready and finance is easier and faster to secure for you.
There are quite a few important things to consider in mortgage conditioning:
Amount and current market requirements: These can vary from lender to lender. It pays to know the target you need to hit here.
Composition of your deposit: some lenders require at least 5% of proven genuine savings if you have less than 20% deposit.
Impact of personal loans, student loans, credit cards: There are some trade-offs here, short term debts versus having a larger deposit to purchase your home.
Lenders are like landlords and want to see a track record of responsible account conduct. Do you have an authorised overdraft? What are the impacts of going in and out of red in your bank account
Have you changed employment recently? Lenders tend not to like 90 day trials.
Self-employed or contracting, there are some considerations here also.
Are there any historical credit issues such as, non-payment of an old phone bill when you moved, old gym contracts you have decided to let slide?
Planning on growing your family, buying a new car to get the kids to sports on the weekend, what impact will this have on your weekly cash flow?
Duration of work visa:
Banks generally want to see over 12 months remaining.
Considering applying, already applied or now approved with travel conditions all have an impact on how the bank see you.
Like anything in life planning is key. Our Loan Market mortgage advisers will ensure you understand the rules around lending and what different lenders expect. This will enable us to present you in the best light to achieve your goal of owning your own home, upgrading or purchasing an investment property.
So if you want to get yourself buy ready, get prepared early by coming in to see us about mortgage
conditioning, the Loan Marketing team will get you in shape and ready to buy.