Applying for a home loan? Here are some helpful questions to ask yourself to help assess if you are ready to take the next step.
Lenders will request proof of income & expenses in order to ensure that you can afford to repay the loan, and that the information in your application is accurate. Pioneer Credit Connect offer a Borrowing Power Calculator on our site that will give you an indication how much money you may be able to borrow based on your level of income.
Formulate a budget to make sure you can afford the expected loan repayments while still managing the other financial commitments in your life. For some of us, this may mean tightening the belt and making some sacrifices; but this will hopefully pay off in the long run.
A strong credit score may help get you an excellent interest rate, so it is best to know your credit score before applying. You’ve come to the right place as Pioneer Credit Connect has their own credit score enquiry page, called Credit Place, where you can obtain your credit score in 60 seconds for free.
You will be required to pay a deposit in the range of 5% - 20% in order to be approved for a home loan. Also if you have less than a 20% deposit you may incur Lender’s Mortgage Insurance (LMI) which will dramatically increase the overall cost of the loan. Not having savings may mean that your lender will not accept you for the loan, so make sure you have this ready when you apply.
Lenders will want access to some income verification and identification documents before approving you for the loan. Being organised will save you time during the process.
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