In order to find your perfect home loan, you must know what factors lenders consider when approving a loan. Among these factors are the amount of deposit a buyer has and his or her financial condition. A broker can help you understand these factors and get an idea of your buying power. In addition to ensuring that you get the best deal, he or she can answer any questions you may have.
Unlike pre-approval, pre-qualification doesn’t affect your credit score. It allows you to see how much money you can borrow and what price range is best for you. If you are interested in purchasing a home, pre-qualification is a good way to determine how much you can borrow.
Pre-qualification is a great tool to use when negotiating pricing and when competing with other home buyers. The process is less complicated than you might think. Simply fill out the form below and you will be contacted within 24 hours.
When you’re ready to buy a house, getting pre-approval for a home loan can help you narrow down your choices and find a competitive interest rate. Depending on the lender, pre-approval letters are good for 60 to 90 days. In addition to narrowing down your options, getting pre-approved will allow you to do more research and shop for a new home.
Pre-approval can also help you look for homes within your price range and give you the ability to make a competitive offer. You can even get pre-approved online if you’re ready to buy a home, so you can begin the process right away.
One of the most important factors for the serviceability of your home loan is your income. If you are struggling to make ends meet, you may consider taking on another job or applying for a higher paying one. However, this can be easier said than done. It’s also possible to cut back on your expenses and debts to increase your income.
Banks use a formula to determine the serviceability of your home loan. This includes calculating your net income, expenses, and commitments. They then apply a certain assessment rate to the base rate of your home loan to make sure you can comfortably make the repayments even if the home loan interest rate increases. APRA recently reduced the assessment rate buffer from 7% to 2.5%, which will help borrowers afford their home loans.