How to Sidestep Common Home Loan Hurdles

Hey there, future homeowners! We're diving into the nitty-gritty of home loan applications today, and let's just say, we've got the insider scoop that's going to make the banks do a double-take. Getting your home loan application over the line is a bit like a dance, and we're here to lead. So, lace up your dancing shoes, and let's dodge those application pitfalls like a pro.

The Deposit Dilemma

Alright, first up on the dance floor is the deposit. Picture this: banks love to see you strut in with a 20% deposit of the property's value. It's like your ticket to the VIP section. Falling short? You might have to shimmy through Lender’s Mortgage Insurance (LMI). But here's a pro tip: it's all about the loan-to-value ratio (LVR) – that's the part of the property's value you're borrowing. Got a $40,000 deposit and eyeing a home with an 80% LVR? You could borrow up to $200,000. It's simple maths, but it makes all the difference.

Income and Expenses: The Balancing Act

Next move in our dance is proving you can keep up with the rhythm of loan repayments without tripping over your other expenses. Banks are like dance judges, ensuring you won't faceplant into financial hardship the moment interest rates spike. They'll peek into your income and expenses with a fine-tooth comb. If the math doesn't groove, it's a no-go. So, make sure your financial routine is tight and right.

Bad Spending Habits: Don't Let Them Step on Your Toes

Ever waltz through life with lavish spending or an Afterpay addiction? Banks might not be fans of your fancy footwork. Tone down the spending and show you can save with the best of them. It’s not just about showing you can stash cash; it’s about moving to a beat that says, “I’ve got this.”

The Credit Score Tango

Your credit score? It's your dance reputation. Missed a few steps? It shows. But ace your moves, and you'll be the belle of the ball. Keep those repayments smooth and steady, and remember, every good move now helps you shine later.

Filling Out the Application: No Missteps Allowed

When you apply, it's showtime. Make sure every detail is spot-on. A wrong step here, like a misstep in your personal info, could have the judges – I mean, lenders – sending you off the dance floor.

And Now for the Less Common Twists

Age Ain’t Nothing But a Number: Whether you’re a fresh-faced dancer or closer to taking a bow, your plan for keeping the beat going matters more than the candles on your cake.

The Right Stage for Your Performance: Not all properties get the spotlight. Some lenders prefer a classic stage, so if your dream home is more avant-garde, make sure it fits the bill.

Self-Employed Soloists: Got your own rhythm? Make sure you’ve been hitting the beat solo for at least 2 years. It’s all about showing stability in your routine.

Credit Card Limits: Think of your credit limit like an oversized costume – it can trip you up. Trim it down to ensure a flawless performance.

Life’s Choreography Changes: Major changes in your routine, like a new job or income switch-up, need a spotlight. Lenders want to see you can keep in step, no matter the music.

So, there you have it, the inside track on making your home loan application a headline act. Ready to take the stage? Craggle's got your back, helping you move in the right direction. Let's make those home loan dreams a standing ovation-worthy reality. Start your application with us, and let's dance our way to success!

Ready to Apply?

Think you’ve mastered the routine? Let’s turn those home loan dreams into reality.

Curtain up! Let's get this show started!

Disclaimer: Unless otherwise specified, the opinions expressed in this article are strictly for general informational and entertainment purposes only and should not be taken as financial advice or recommendation. Views are subject to change without notice at any time.