How to keep your loan application on track

How to keep your loan application on track

For the best possible chance of getting the loan that suits your circumstances, you need to tick all the boxes. If an application is not completed correctly, you risk delays in approval, or even being declined by potential lenders.

There is various documentation that will need to accompany your application, satisfactory identification and evidence of income by way of pay slips, and many lenders will expect to see a reference from your employer, group certificates or tax returns, and records of any investments or shares that you might have.

If you are self-employed, you will need to organise alternative documentation to prove income, such as financial statements relating to the profit and loss of your business going back two years. Lenders will also want to see bank statements going back a few months to track your spending and savings history. Most importantly, you will need to provide the details of your debts.

You will be asked to include documents that outline HECS debt, personal loans, credit card liability and any expenses relating to dependants. If you are unable to disclose this information, your loan is very likely be declined.

For a lender to assess your capacity to service loan repayments, every financial detail must be considered. Lenders will need to see proof that you can manage the responsibility of the loan, through steady employment, a good credit history and a debt-free approach to your financials.

By having all of your documents organised and a saving and repayment plan documented, as well as evidence that you can commit to the plan, you will increase your chances of receiving the loan you are after, even if your credit history is not perfect.

In many cases, home loan applications require professional guidance and help, so call us for answers to your questions and let us get you on the right track to start with by ensuring that your documentation is in order.