As many Australians can attest, the road to getting a home loan can seem daunting.
At first glance, there appear to be more steps than you can count, and unless you have previous experience, it can be overwhelming.
However, we’re lucky that the internet exists, as there are an abundance of tools both online and in-person that can make the path to a mortgage that much easier.
Here are a few ways to get a leg-up in the application process.
Assuming you’re almost at a point where a deposit has been saved, you’ll need to start looking at exactly how much you can feasibly borrow from a lender, what your repayments will look like and subsequent interest rates.
Conveniently, Suncorp has two calculators on their site that help you figure out exactly that. The Borrowing Limit Calculator helps you determine how much you can borrow as a single person or a couple, while the Home Loan Repayment Calculator gives you an indication of interest rates and how many years it will take to pay off the loan.
In order to successfully obtain a home loan, you’re going to need a good credit score. To check this, you can head to the Equifax page, enter your details and they’ll do the rest.
From there, you’ll be able to evaluate whether you need to rectify your credit score (paying off loans and credit cards on time, for instance) or if you’re good to push ahead with your application.
If your credit score looks like it needs a bit of work, you can always speak to a professional to get their opinion on how to tackle it.
Although this isn’t necessarily a tool per se, it can be handy for those who struggle with organisation to use a checklist, just as a measure to make sure everything is being ticked off along the way.
This interactive checklist lays out steps you need to take and what needs to happen during each step — from the home lending process right through to the home buying process — making it as simple as clicking a button to remind yourself that you no longer need to do any more work for that particular step on your way to owning a home. It also saves the results of your home loan calculators.
Of course, you can always manually write down your own checklist, but that sounds like a lot more work.
Applying for pre-approval is a great way to gauge your buying limits. The application is free and banks will be able to let you know roughly how much you’ll be able to borrow, which, in turn, can help you weed out potential homes that aren’t in your price range.
Once you’re approved, there’s still no obligation to proceed but it will give you, and your real estate agent, confidence to make an offer.
Home Lending Specialists
Lastly, there are home lending specialists on hand that can guide you through the entire process at no cost.
The specialists are available all week, so you can meet or speak to them whenever it suits you. If you’re ever feeling unsure about your next move, just speak to someone who can clarify it for you.
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