Getting Your Loan Approved First Time

Lenders want to give you money….always remember that as they make a lot more by lending it than not lending it.

Most lenders will look at your application and find why they would approve your loan more so than decline it.
Good income, stable employment, great property.

There are also some things that will help in your favour like having low credit cards that have strong repayment history, strong rental payments maybe even staying a month in front.
Bills paid on time and of course any proof of savings, with a stable job for over a year.

Of course though we all know that life does not run as smoothly at times and we can take some falls along the way, but there is still a lot of hope even if you feel that you might not be the strongest applicant.
These days we have so much more competition with the lenders that they are always coming up with ways to win new clients, like being able to have unpaid defaults and judgements etc against your credit file. You will however pay higher interest for the use of this money, but sometimes the gain far outweighs the cost.

When you know that you are ready to take that step into the market most people feel more comfortable having a pre approval so that they know how much money the lender is prepared to lend them. This process is really very simple and another benefit it brings is knowing what other documents might be needed to get together before a full approval is needed on finance day.

After the application is submitted and you have a contract of sale subject to finance the lender will order a valuation of the property you are wishing to purchase, to check that it is a saleable asset and assess the risk incase anything should happen and you can not sustain the loan.
Some people may also place high sale prices on their property, but a bank will only lend on what they think it’s really worth.

Your application will go from conditional (meaning the lender requires more information) to unconditional (meaning there is nothing else they wish to see and the valuation and Lenders Mortgage Insurance has been approved)
Some other costs to also consider for day of settlement and afterwards are government fee’s , taxes , legal fee’s and lenders fee’s.
Don’t forget once you have the property you will also have moving costs and extras like new connections of electricity and phone.

If you would like more information or simply just wish to have some questions answered , please leave your contact details on our online enquiry so that one of our brokers can get in touch with you.