Getting Ready to Buy

Here are a few pointers to make your finance approval stronger and put yourself in the best position to get your finance approved:

• Try not to change jobs just before buying a home. Employment stability is an important factor for a lender. As a general rule most lenders prefer 6-12 months in your job. There are exceptions though and this is a good place to make use the experience of your Lime MB.
  
  
• Save 5%-7% for a deposit – this will take care of deposit and should cover any contribution to lenders mortgage insurance if the lender does not allow you to add all this to the loan.
  
  
• In addition to your deposit consider stamp duty, settlement agents fees, transfer duty, and local council rates when estimating the total amount of funds you require.
  
  
• If you are self employed most lenders require 2 years financials, tax returns and assessment notices. They will also require you to have your abn for 2 years. There are exceptions too this, so speak to your Lime MB Broker if you do not have 2 years financials.
  
  
• Run a credit check. You can do this for free at http://www.mycreditfile.com.au/products-services/my-credit-file With respect to your credit file, if you have more than 6 applications/enquiries on your file in the last 6 months talk to your Lime Mortgage Broker before making your application. Several lenders will decline your loan in this instance.
  
  
• If you have ever had bad conduct with your current lender (i.e. overdrawn your account, missed/late payments on your credit card, etc) ensure you discuss this with you Lime MB.
  
  
• Ensure the first 5% of your deposit is money you have saved and/or held over a period of 3 months or more. If you receive a gift, ATO refund, bonus etc lenders may require you to hold this for 3 months before allowing it as part of your first 5% deposit.

We always advise to give us a call when you start the process for buying or building a home. Lime MB is happy to give you some of our time to ensure you are equipped with the right information on your current circumstances to try make the finance process as smooth as possible.