Almost 10 years ago a study concluded that nearly 30% of mortgage applicants found themselves facing rejection notices. Unfortunately, this percentage has increased over the years making getting a mortgage more and more challenging for first time home buyers. Although Australian lenders are considered much fairer than others around the globe, even they have stipulations that can sometimes lead to potential borrowers receiving that very outcome.
Mortgage Application Tips
Although it is becoming increasingly difficult to obtain approval on a home loan it’s not impossible – and for those that are keen to maximise their chances, here are a few helpful tips:
Consider Hiring a Mortgage Broker
It’s now said that 2 in 5 people apply for their mortgage through a broker. These financial experts are often tasked with taking care of the technical activities that so many new home buyers (and even experienced property investors) struggle with. They can compare interest rates to help with finding the cheapest options on the market, as well as managing the negotiations process and much more.
Use a Mortgage Calculator
Another effective way to walk into an application with the maximum chance of obtaining approval is by being prepared. And a good way to be prepared is by getting to grips with your own finances; including your potential to borrow, what you can afford to repay and other finance-related factors. An online home loans calculator can help with this by working out your borrowing potential and more.
Don’t Dive before You Can Swim
Plenty of people make the mistake of rushing into a mortgage with the hope of floating through the processes involved – only to find that they don’t quite meet the requirements, or fail to provide the necessary information, resulting in delay. Instead of running the risk, why not take your time and speak to a mortgage advisor for a bit of expert information?