Getting a Mortgage in BrisbaneWhen applying for a mortgage it is important to ensure you are aware of what the lender requires to grant approval. Lenders will look at many factors when assessing your application and the risk to them along with your ability to pay back the loan are their main priorities.
The lender is usually looking to approve the loan rather than reject it as obviously they make money by lending money, not refusing loans. However, they will want to look at your capacity to repay the loan, as well as looking
at the property's value.
Lender's Credit Score
Most lenders will use a Credit Scoring System, where all of your details from the application form are entered. This gives your application a weighted score. If your application passes a pre-determined level, you will more than likely be pre-approved, and if your application is in order, then this generally means you are approved, subject to property valuation.
If your application does not pass the computer scoring system, a (human) credit manager will receive your application and they will manually assess your case. They will generally ask for further information and documents. This is the stage where a mortgage broker is most effective for you.
Proof of Identity
Generally, you will need proof of your income, residence, savings and identity. Although no-documentation loans and low-doc loans require limited or no proof of income, proof of identity is non negotiable, and is required on all home loans.
Your Credit Profile
Your credit history will be assessed and taken into account. Your credit profile is made up of your personal details, credit applications from the previous five years, overdue accounts, bankruptcy information and public record information.
Property Valuation
All approvals are subject to the property valuation. The loan will be 'conditional' until this is completed. Once the lender receives the report, they will check that the valuation is within the parameters of the conditional approval amount. If it is, then the loan becomes unconditional and you are now fully approved. Keep a copy of your application and any attachments for any future reference.
If you can proove that you have a secure and regular income, have a deposit and a good credit score then getting a mortgage should be fairly simple, but you will need to look caefully at which mortgage you take out. Don't just compare interest rates. Look at annual costs, monthly fees and exit fees, as well the flexibility of the features attached to the loan.
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