What you need to have on hand when applying for a home loan
There’s a lot you need to have in place when it comes to applying for a home loan and it can be a confusing process to wrap your head around.
To help take the overwhelm out of this daunting (but very exciting!) process, we’ve fleshed out the information you’ll need on hand when it comes time to take that next step and apply for a loan.
Identification
This one’s easy - make sure you take along some form of photo ID like your driver’s license, passport, birth certificate etc. Exactly what you’ll need will depend on your lender, so double check with them before you head in for your meeting.
Income
You’ll need to provide some kind of proof of your income so your lender can accurately assess your ability to repay the loan. If you’re applying directly with a bank and you have accounts set up with them already, then it may be enough for them just to see the regular income payments in your account. If not, or if you’re working with an independent broker, then you’ll need to bring copies of your bank statements for the last three to six months, depending on your type of employment and depending on the requirements of the lender/broker.
· Other documents like recent payslips, your employment contract or your tax return are also helpful to have on hand.
· If you work for yourself, then personal and business tax returns as well as recent business financial statements will be important.
· Finally, if you have any other sources of income (Centrelink payments, property or share investments) then you’ll need to bring along appropriate documentation for those too.
Outgoing costs
You’ll need to go into this meeting with a clear understanding of your current living expenses and it’s a good idea to figure that out by combing through your last few months of bank statements. How much do you spend on food, transport, clothing, bills? Taking the time to really understand this will make sure you don’t end up with a loan you can’t stay on top of, and it will help the lender establish what they can loan you.
Not sure what your living costs look like? Pull out a highlighter and go over your bank statements from the last 3 months to get an averaged idea of what your spending looks like. Our friends at UBank also have a handy dandy living costs calculator which breaks down spending into a range of categories, so plug in all your info and totals it all up for you!
Other bits
If you’re in the fortunate position where someone may be gifting you a portion of your deposit, you’ll need to provide a letter from whoever is gifting or lending this money, with details of the contribution and how they will be repaid if that is expected.
If you already know the property you’re hoping to buy, take along the Contract of Sale and the contact details of your solicitor or conveyancer.
If you live in a state where you’re eligible for the First Home Owner Grant or other concessions, bring your completed applications.
Of course different lenders will require different documents and this list is by no means exhaustive, so our advice is to get in touch with your lender ahead of time so you know exactly what you’ll need to take along on the day!
If you’ve made it this far we can only assume you’re ready to jump into your property journey (or at the very least, arm yourself with all the info so that when it’s time to jump, you’re prepared) – and if that’s the case then our podcast ‘The Property Playbook’ is the one for you!
Victoria and buyers advocate Amy Lunardi are taking you through the A-V of property (tehe) and it’s all being made possible thanks to our friends at UBank.
UBank are helping us bring this season of the podcast (and this blog post!) to life and they’re also helping Aussies get on the property ladder with great rates and award winning home loans. Check them out here
Any advice in this blog has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this information, you should consider whether it is appropriate for your circumstances.
Information current as at 15/09/21 and subject to change. Terms, conditions, fees, charges, eligibility and lending criteria apply for all UBank products (available on request).
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