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Going to your bank to talk about a home loan can be much easier if you have everything with you. Spending a little time on this could save you time and hassle later down the track. Here are some tips.
Personal accounting
Make sure you have all your basic personal accounting sorted out so you can show the bank why you think it is the right time for you to buy a home.
Get organised
Don’t wait until the last minute to organise your paperwork for the appointment. Some documents you may need include:
- Two pay-slips or a letter from your employer stating your salary or hourly rate of pay and average hours per week
- Three months of bank statements
- Evidence of savings and a deposit
- Identification such as passport and drivers license
- If you are self-employed, two years’ worth of financials
What you may need to bring to the meeting
Savings account statements, term deposit certificates and investment statements are examples of what you can bring to your appointment to help demonstrate your saving abilities. Once you have all these details sorted, make an appointment with a lender to talk about home loan products and the home loan approval process. Applying for a home loan typically consists of an application which considers your personal details, the requested home loan product, your proposed property, your objectives, income and expenses and credit history checks.
Becoming "financially fit"
To get financially fit you could:
- Reduce your outstanding debts to help improve your assets-to-liability ratio. This includes paying down credit cards, personal loans and store cards.
- A good on-time payment history will reassure the lender of your ability to re-pay your home loan. Supply your statements such as for credit cards, car loans and so on.
- It is important to build up your savings account as many lenders require a record of savings history as part of the criteria for applying for a home loan.
- You may wish to consider opening a high-interest savings account or term deposit to assist in growing your deposit faster.
Talk to an IMB Bank lending specialist at one of our branches or a Mobile Lender can come to you at a place and time convenient for you. We will walk you through the process and assist along the way.
