Owning a home of your own is the dream of many Australians, being able to wake up in the morning in a place that is truly yours, paint and modify it in any way you choose, and never have to worry about a landlord selling it out from under you. Fortunately, home ownership is a dream that can be made to come true with the help of a home loan and a mortgage.
If you are interested in having your own home and getting the best advice possible, just contact mortgage broker services by Loan Nerds, experts in their field who can help you navigate the process and lead you to success! The following is some useful information and the answers to some common questions that can help you get prepared:
What is the process for making a home loan application?
- Gather together all the required documents
- Undergo a preliminary assessment by your lender
- Submit your application to the lender
- The lender will complete a property valuation
- The lender will either approve or reject the loan
- If the lender approves, they will make you an offer
- Finally, the loan is settled and the funds are advanced to you
The next question that comes up is how to get a mortgage pre-approval? By getting a home loan pre-approval you will be able to borrow up to a certain point, giving you a better feel about what you can afford. Home loan pre-approval required documents include:
- Your bank statements and your proof of savings
- Your proof of income, such as tax returns and payslips
- Your listed current assets and liabilities, such as any personal loan and credit card debt
- 100 points of ID, such as a valid driver’s license, your passport, etc.
Remember that becoming pre-approved doesn’t always guarantee that your home loan application will be successful!
The next question people ask is how big a mortgage can I get? There isn’t actually a set limit to how much you can borrow for a home loan, but the amount will depend on the following:
- The total amount of your annual pre-tax salary
- How much extra regular income you receive such as rental payments, extra part time jobs, inheritances
- The average amount of your monthly living expenses
- The amounts of your regular credit and loan repayments
- A history of your savings
- The number of dependants such as children you are supporting
- Your marital status
- What kind of home loan you are seeking such as investor, owner-occupier, etc.
- Your home loan’s length
That brings us to the question how long does getting formal mortgage approval in Australia usually take?
- The answer is usually about four to six weeks starting from submitting the application to your lender, to reaching a settlement on the property
The Australian Government’s Housing Australia website has more information on home loans and mortgages. In closing, we want to wish you all the best in your home loan mortgage pursuits and hopefully be able to tell you “Welcome home!”
