In the current era, we are always looking for faster decisions and quicker answers. The same applies to the lending world. When we finally decide it is time to buy a home, an investment or even do some renovations, we want to know as soon as possible if the banks can see our vision.
Before coming to the point of application, there are many rules and considerations, which if navigated well can result in a quicker decision from the Lender. With some planning and some care in the months leading up to an application, you may find you get a faster response or better outcome from your application.
Prior to making an application, consider the following:
- Complete a budget based on your current spending and consider what could be trimmed if required. This will be required as part of an application with most lenders anyway.
- If you have numerous credit cards or even interest-free facilities, consider closing off some or reducing the limit to give you maximum borrowing power.
- Have a look at your credit profile to make sure there is nothing that would cause a bank to ask more questions.
- Lenders review account statements for your everyday expenditure so be mindful in the 3 months leading up to an application where your money is being spent.
- Make sure all your payments are up to date with no late or missed payments showing up on your statements. This would also include overdrawn amounts through your everyday accounts.
- We are currently enjoying the lowest interest rates ever which is good for our loan repayments. When doing your research, check that you can still afford the repayments and your current lifestyle, if rates were to increase in the future.
- In preparation for making an application, have the money you are using for a deposit held in an account in your name. If you are planning on selling something to make up your deposit, have this completed before you apply. Lenders will want to make sure that you are able to complete the settlement based on your current position.
- When considering an investment property purchase as a couple, there are some considerations around who should be on the contract for the purchase. Get some advice around this to maximise current and future benefits.
There are a lot of points to consider when making changes to your debt position and with the right preparation, you can improve the speed and outcome you receive from the lender. For other ways to help when making applications please call our Lending Manager Warren Good at Nexus Private Wealth Management on 1300 473 347.