Looking to get on the property ladder? You’re most likely going to need to get a mortgage. Albeit it’s not as exciting as browsing TradeMe or looking through property adverts, mortgage planning is something that if not done properly, can result in high stress. Below are some crucial tips which will help you to get your home loan approved – and avoid missing out on your dream property!
Be prepared with the supporting paperwork. The lending market is extremely busy so having all of the supporting information will make for a quicker, smoother and easier approval. Also, factor in your planning that sometimes it can take 1-7 days to get your loan approved depending on timing, complexity of the situation and how complete the application is.
Common mistakes to avoid:
- Not being prepared with all of the information and paperwork needed.
- Leaving things till the last minute!
- Thinking loyalty to your own bank will be enough for a loan approval.
- Not being patient when house hunting – remember it will require mental stamina!
- Not getting advice from a mortgage professional who knows the rules.
Whilst there are cases you can get by with a 5% deposit, aim to have at least a 10% deposit as this will improve your chances.
Other important factors you need to consider:
- If you are self employed, have your financials up to date.
- Apply to be pre approved for the Home Start subsidy before the mortgage application if you are relying on this as part of your deposit.
- Live within your means, spend less than you earn and avoid unarranged overdraft fees on your statements.
- Declare all debts on your mortgage application.
- Whilst KiwiSaver is classed as savings, try and save some cash as well if you can.
- Don’t rush to pay off debts with potential deposit money until you have spoken with a mortgage adviser.
- Clean up and pay off any bad debt or adverse credit report.
This is an exciting time in your life, enjoy! And remember, Chat to a Craig Pope Mortgage Adviser who knows the market and what banks are more likely to approve your situation – this will save you time and likely money in the long run.