What should I be doing in preparation to apply for a home loan in six months time?

Any general questions you might have in regards to loans and finance.
Benny
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Joined: Wed Jun 12, 2019 4:24 pm

What should I be doing in preparation to apply for a home loan in six months time?

Postby Benny » Wed Jun 12, 2019 4:26 pm

Hi, I’m a recovering alcoholic but been sober for over a year and have held down a secure job as a warehouse foreman (supervisor) earning $56,900 p.a. plus super. I’ve been going over your no deposit home loan page and none of the options work for me. What do you recommend I should be doing in order to qualify for a home loan in six month’s time?

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Otto Dargan
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Re: What should I be doing in preparation to apply for a home loan in six months time?

Postby Otto Dargan » Wed Jun 12, 2019 6:37 pm

Hello Benny. Welcome to the forums.

No deposit home loan solutions are not for everyone. The best way for you to get a home loan is to save a deposit of your own.

Following these tips will help you qualify:

  • Prepare to buy: Use our prepare to buy program to prepare to qualify for a mortgage.
  • Deposit: As a minimum save 5% of the purchase price in a bank account in your name. Make regular contributions.
  • Don’t change jobs: Lenders like to see stable employment and steady income with their borrowers especially if you’re borrowing at a high LVR (loan to value ratio).
  • Pay your bills on time: When you don’t have a large deposit, lenders rely on your credit file and your rental history to determine if you’re a reliable borrower.
  • Stay in touch: Our mortgage brokers specialise in low deposit home loans. Get in touch with us when you’re ready to apply for a home loan.

Give us a call on 1300 889 743 or fill in our free assessment form once you’re ready to apply for a home loan.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Benny
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Joined: Wed Jun 12, 2019 4:24 pm

Re: What should I be doing in preparation to apply for a home loan in six months time?

Postby Benny » Wed Jun 12, 2019 7:05 pm

Let’s say I saved up a 5% deposit but I’ll be on the hook for a significant fee in LMI. How do you decide if one should buy now or save a larger deposit?

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Otto Dargan
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Posts: 7455
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: What should I be doing in preparation to apply for a home loan in six months time?

Postby Otto Dargan » Wed Jun 12, 2019 7:31 pm

Hi Benny,

Ideally, you would want to save a 20% deposit and avoid paying Lenders Mortgage Insurance (LMI) altogether. However, by delaying your purchase you’ll pay more in rent, in the meantime, house prices may grow out of your reach.

You can use our buy now or save more calculator to figure out the best option for you.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Maximillian
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Joined: Wed Jun 12, 2019 7:35 pm

Re: What should I be doing in preparation to apply for a home loan in six months time?

Postby Maximillian » Wed Jun 12, 2019 7:36 pm

Hi there, I’ve saved up a $22,000 deposit which is slightly more than 5% of the property price I’m interested in, it’s a townhouse listed at $413,000. The problem is I defaulted on a credit card a couple of years ago due to being made redundant at work. The $2,000 default was paid off last year. Will banks consider my home loan application with an adverse credit listing?

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Otto Dargan
Mortgage Specialist
Posts: 7455
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: What should I be doing in preparation to apply for a home loan in six months time?

Postby Otto Dargan » Wed Jun 12, 2019 7:51 pm

Hi Maximillian,

Major banks and lenders will likely decline your home loan application due to your bad credit history. However, there are non-conforming or specialist lenders that are more flexible with their lending policies.

They tend to assess your home loan application on a case by case basis and listen to your side of the story as to what went wrong and why getting a home loan will put you in a better financial position. They understand that many Australians who fall into bad credit aren’t unreliable borrowers, most of them have simply had an unfortunate life event happen such as job loss, divorce, injury or business failure that has resulted in blemishes on their credit files.

The type of defaults, the dollar value, how old they are, if they’re paid or not and the total number of defaults are all taken into account by our lenders. You can learn more about home loan with defaults here.

We specialise in bad credit home loans.

Speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743 or by filling in our free assessment form to find out if you qualify for a bad credit home loan.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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