For some people, the thought of completing a home loan application can be overwhelming. It’s part of our role at Chirnside Premium Finance to make the process easier for our clients, and a little preparation goes a long way.
Lenders have certain responsibilities as part of the responsible lending guidelines to make sure that they only approve loans that are not unsuitable and that clients seeking loans can afford the loan repayments.
As part of the loan process you should expect a Lender to seek out and verify certain information. The following tips will assist you to prepare what you need to assist your broker to lodge your loan application.
1. Verifying Your Identity
Each Lender has their own policy around the minimum requirements needed to verify the identity of new clients. Typically they will ask for as much information as possible. You will require photographic proof of identity, such as a valid passport, drivers licence or proof of age card.
Other forms of identity would include birth certificate, Medicare card, rates notice or utility bills no more than three months old.
2. Proof of Income
You must be able to demonstrate your ability to repay the proposed loan so you will be asked to provide one or more of the following depending on the policy of the Lender.
Pay slips including a year to date figure, Tax assessment notice, a letter from your employer detailing your position and details of employment or the last 2 years financial statements for self-employed individuals.
3. Declaration of Assets
As part of the credit assessment process Lenders will want to verify the details of any items you list as an asset on your loan application to fully establish borrowing capacity.
This can include a copy of your rates notice, statements showing your savings, evidence of shares that you own or any other assets including cars. It can also be handy to have your superannuation statement available and copies of your house and contents insurance.
4. Establishing Liabilities or Debts
Lenders will also want to validate and verify any outstanding debt/s you have at the time of the loan application.
These can include other loans, credit cards or Higher Education Contribution Schemes (HECS). You must also consider all other repayments or debts you may have in the future. You should provide a copy of the most recent statements for all of these debts.
If you would like a comprehensive list of what you need to provide to support your loan application, I welcome your call on 0425 758 938 or email to richard@cp-finance.com.au
