Part of your mortgage application includes the last 3 months of bank statements. This is so the Bank can assess your money management to ensure you are a good applicant to lend money to. Think about it, if you were lending someone $500,000 or more, you'd want to know they are good with their money and are going to be able to manage the repayments.
To demonstrate this, you should show:
You can learn more about Looking After Your Bank Account here.
More and more in these uncertain times, Banks are scrutinising the employment status of an applicant. Banks are looking at the industry you're employed in to see if your employment is stable in the medium term. They are also being more conservative when it comes to accounting for commission based employment.
To help overcome this and convey your employment in as a concrete way as possible, you can:
Any application should always include:
A loan application requires a fair bit of supporting documents in order for the Bank to properly assess your suitability for a mortgage. It is important to ensure your application includes these documents to avoid delay in processing.
The supporting documents you will need are:
Added extras you may want to include:
As with many specialist things done for the first time, buying a house is a process that benefits from expert advice. That is where a mortgage advisor can be very beneficial in helping reduce the stress for an inexperienced home buyer.
A mortgage advisor can help you:
You can arrange a chat to one of our advisors here.
Both KiwiSaver Withdrawal and First Home Grants are a substantial helping hand for first home buyers attempting to build a deposit.
So when it comes to preparing yourself for a mortgage, here are some key things to be looking to do:
Getting a credit credit is an important part of ensuring your loan application will be well received by the Bank.
A credit check will show up any defaults from non-payment for things like hire-purchase or credit cards. Any outstanding defaults need to be paid with an explanation for any settled defaults to help give the Bank comfort that your track record is for reliably paying your debts.
Here are a few companies that can provide free (with delay) and prompt reports (for a fee):
When you're about to jump into the biggest investment you're likely to make, it is a good time to have a conversation with an advisor about your insurance needs.
The First Home Buyers Club works with Sarah Bloxham at Let's Talk Mortgages & Insurance. To have a chat with Sarah complete the form here.
Think you're ready to take the step of submitting an application but would like some help? Our advisors are here to help explain the steps and guide you through the process.
Complete the below form to get going...