Getting approval for a home loan means you're one step closer to finding and moving into your dream home! So why delay the process?
Here at BOQ, we believe preparation is key, especially when it comes to making important financial decisions like applying for a home loan. Doing so will ensure a smooth and (hopefully) successful move into home loan territory!
To help make sure things can progress without hiccups, here are some of the essential documents you should bring to your home loan appointment:
Proof of ID
Firstly, your lender will need to know it’s you they’re dealing with, and not just any Tom, Dick or Harry. To confirm you are you, a lender will require two forms of proof of ID:
- Either a passport or driver’s licence.
- One non-photographic form, such as a birth certificate, credit or debit card, or a Medicare card.
Your advisor will take a copy of these documents and verify them for future use.
Confirmation of what you earn
We’re not nosy, we simply need details about your income so we can see whether you’ll be able to comfortably and confidently meet your loan repayments. What you’ll need to bring depends on your state of employment:
- If you’re a wage/salary earner, you’ll need to bring two of your most recent payslips or a bank statement that shows three regular salary payments with the name of your employer included.
- If you’re self employed, a lender will typically ask you to bring your last two years’ tax returns plus tax assessment notices, as well as prepared profit and loss statements.
- If you receive income from rental properties, you’ll need to bring a current signed lease agreement or a current bank statement showing regular rental payments to your account, with the name of the managing agent included.
Your lender may also ask if you receive income from any other entity not mentioned in the above list, so always come prepared with evidence to easily showcase this.
Evidence of your saving capability
Your lender will need to see evidence of your saving abilities. This could take the form of term deposit certificates, savings account statements, or share certificates.
What you owe
It’s not uncommon for lenders to ask potential borrowers if they have any current credit commitments. Such liabilities don’t usually hinder the home loan process, but it’s important you disclose any from the offset to ensure your lender is on the same page and gets a true understanding of your financial situation. This will ensure they’re able to offer you a financial solution that is perfectly suited to you.
These could be loans of any kind, hire purchases, credit cards, leases and any other debt you’re currently paying off.
Information on your regular expenditure
Having a semi-accurate idea of your monthly expenditure and sharing this with your lender is an essential part of the home loan approval process. This document may include rental, utilities, insurance, food and even childcare fees. Understanding your average spend will give your lender insight into your financial patterns and whether your expenses will get in the way of making mortgage repayments.
If you’re interested to find out more about BOQ's home loans and how the approval process works, why not pop into your local BOQ branch and speak to one of our friendly team members today?