How to give yourself the best chance at getting your home loan approval:
If you are interested in getting approved for a home loan there are a number of ways that you can set yourself up for success with a home loan application. Lenders typically look for a few signs in your credit history between your everyday accounts, credit accounts and current loan repayments. Here are some of the best ways you can work on your financial history before you apply for a loan:
Keep overdraft to a minimum: Making sure that your account rarely goes into overdraft is important. If your account is regularly overdrawn this can often lead to a loan application being declined. Keep track of your finances and set out a budget to make sure that you don’t have to access your overdraft products.
Keep a 30% ratio on credit card balances: if you’re going to keep a balance on your credit card keep it below 30%. This will ensure that you have minimal interest rates and that you’re still going to be accessing your credit card products. Ideally, you will quickly pay down any products you purchase on a credit card for the best credit score. Pay down any ongoing balances that you have and consider reducing your credit limit if you don’t regularly have to access the full balance.
Pay every bill on time: lenders are going to be looking into your everyday accounts and this means everything from paying your cable and hydro bill on time to other loans such as your auto loan. A failure to miss one of these payments could act as a huge detriment to your loan application.
Check your credit score: your credit score is available for viewing online through a number of services. The national reporting center for credit score can issue you your credit score for free. If you happen to notice any errors in reporting with your credit score you can dispute this with a lender and quickly improve the status of your application.
Keep some of these top ideas in mind going into a home loan application. This can make sure you have the best chance in receiving your home loan approved.