Other than the obvious documentation that needs to accompany an application, satisfactory identification and evidence of income by way of pay slips, 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 in order to track your spending and savings history. Most importantly, you will need to provide the details of your debts.
You must include documents that outline HECS debt, personal loans, credit card liability and any expenses relating to dependants. If you don’t disclose this information, your loan will very likely be declined.
In order for a lender to assess your capacity to service loan repayments, every financial detail must be taken into account.
Lenders want to see proof that you are capable of managing 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, and our MFAA Accredited Mortgage Advisors have the expertise to match a loan to a borrower and help you to ensure that your documentation is in order.
