Buying a home is a big decision, and getting a mortgage is a big part of that process. If you’re thinking about buying a home, it’s important to get ready to apply for a mortgage as early as possible. Here are some tips on how to do that:
- Get your finances in order. This means having a good understanding of your income and expenses, and making sure that you have a good credit score. You can get your credit score for free from a number of websites, such as MyCreditfile or Equifax.
- Start saving for a down payment. The more money you have saved for a down payment, the better your chances of getting approved for a mortgage and getting a lower interest rate. A good rule of thumb is to have a down payment of at least 20% of the purchase price of the home, however you can protentially borrow upto 95% of the purchase price.
- Shop around for a mortgage lender. There are many different mortgage lenders out there, so it’s important to shop around and compare rates and terms. You can use a mortgage calculator to help you figure out how much you can afford to borrow and how much your monthly payments will be.
- Get pre-approved for a mortgage. Getting pre-approved for a mortgage will give you an idea of how much you can borrow and what your monthly payments will be. This will make it easier to make an offer on a home, and it will also give you peace of mind knowing that you’re approved for a mortgage.
Once you’ve done these things, you’ll be ready to apply for a mortgage. The application process can be a bit daunting, but it’s important to be prepared. Here are some things to keep in mind when you’re applying for a mortgage:
- Gather all of your paperwork. The lender will need to see proof of your income, your expenses, and your assets. You’ll also need to provide your credit report.
- Be honest about your finances. The lender will be able to see all of your financial information, so it’s important to be honest about your income, your expenses, and your debt.
- Be patient. The mortgage application process can take a few weeks or even a few months. Be patient and don’t give up.
If you follow these tips, you’ll be well on your way to getting a mortgage and buying the home of your dreams.
- Get a copy of your credit report from major credit bureaus. This will help you identify any errors or inaccuracies that could be affecting your credit score.
- Check your credit report for any late payments or collections. If you see anything that’s incorrect, dispute it with the credit bureau.
- Talk to a mortgage broker. A mortgage broker can help you compare rates and terms from different lenders, and they can also help you through the application process.
If you would like to discuss your individual situation, call 1300 30 6767 or fill in the enquiry form on this page