Securing Your Home Loan - What Lenders Are Looking For
Saving for a deposit on a home loan is one of the largest saving goals that most Australians undertake in their lifetime. Saving up for that new iPhone 5 has nothing on securing your dream home!
But in order to get your home loan sorted, you have to prove to the lenders you’re capable of making repayments on time and to the terms agreed to.
There are a number of factors involved in the decision to lend out home loans, but they all boil down to one question - is this person reliable enough to pay back their loan on time?
However, lenders not only look at how big your savings are, but the way you made those savings.
Depending on if your income is consistent month-to-month will factor into their decision to loan to you or not.
Financial discipline and evidence of consistent savings over a long period of time demonstrate to the lender your ability to repay the loan in due time.
Remember this when saving for your home loan deposit - your week-to-week budget factors into your potential borrowing capacity as well!
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.