How To Prepare Home Loan Documents
If you’re soon to be applying for a mortgage and are pondering what home loan documents will be requested of you, it’s important to get organised in advance.
Like any big ticket purchase, applying for a home loan usually requires a significant amount of paperwork – particularly if you actually want to get approved. From payslips to proof of identification, banks don’t give out loans to just anyone without doing at least a bit of background research into you first.
Above all, the primary concern of any lending provider is mitigating their exposure to risk. If you’re able to present yourself as a favourable candidate for a home loan, it makes the process of getting pre-approved relatively straightforward, and things like a sizable deposit, a history of regular savings and a clean credit report will all work wonders in improving your application.
However, the way that you present your home loan documents also have a role to play in getting approved as well, which is where partnering with a reputable mortgage broker can be worth its weight in gold.
The Ultimate Mortgage Documents Checklist
Apart from ticking all the right boxes, one of the first things that any applicant can do when it comes to getting approved for a home loan is to partner with an industry accredited mortgage broker. Regardless of your personal circumstances, mortgage brokers are industry professionals who know the ins and outs of the world of home loans.
Not only will they be able to suggest lending institutes that are suited to your own set of individual circumstances, but they can also help you with your documentation to ensure your application hits all the right notes. However, there’s still a few basics that just about every application will require, with the fundamentals of home loan documents including the following.
Proof Of Identification – To tackle the legal stuff and ensure that you are who you say you are, just about any lending institute will require applicants to verify their identity when making a loan application. Forms of primary identification with some kind of photograph include a valid passport, drivers licence or proof of age card.
Proof Of Income – Your borrowing power is calculated using the net amount left after your monthly income and deducting your expenses, so it’s crucial to get your proof of income documentation right. Along with payslips and even group certifications, be sure to include any extra income like rental earnings. Self employed applicants may find this process more difficult.
List Of Expenses – Many applicants underestimate how much a bank will scrutinise their list of outgoing expenses, so don’t take these mortgage documents lightly. Everything from your phone bill to a Friday night kebab habit will be taken into account, so it’s a good idea to review your bank statements and start cutting back before applying for a mortgage.
List Of Assets – Like it or not, multiple assets have a tendency to make lenders feel more confident about your security. As a borrower, the sale of assets can assist in the repayment of your home loan if an unexpected redundancy or unemployment occurs, so be sure to list any property, vehicles or other savings that are tied to your name.
Existing Liabilities – In contrast to assets, liabilities are any financial debts or obligations you may have. In order to accurately predict whether you’ll experience any mortgage stress further down the track or not, lending institutes need to know what other financial commitments you may already have ties to, such as existing home loans, personal loans or credit cards.
Borrowing Purpose – The circumstances of why you are applying for a home loan will determine what kind of mortgage documents your financial institute will ask for. First home buyers and other owner occupiers need to prove a transparent history of savings for at least six months, while property investors and refinancing applications are a whole different ball game.
When it comes to submitting your home loan documents, “packaging” your application is where a mortgage broker really shines. This process is never done with a one size fits all approach, as they know what works and what doesn’t, and how it varies between each lending provider. If you haven’t already enlisted the services of a mortgage broker, it might be time to reconsider – but where do you find one?
Partnering With Home Loan Professionals
Navigating the complex world of home loans has long been regarded as stressful, frustrating and time consuming – but if you can find the right advice on sourcing how mortgages work, then the good news is that it doesn’t have to be.
Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 2,000 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it.
If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.