fbpx

The biggest mistakes you have to avoid when applying for a home loan

What are they and how can you avoid them?

Big Mistakes to avoid when applying for a home Loan

Big Mistakes to avoid when applying for a home Loan

Okay, here are some nasty habits that we need to avoid when applying for a loan – even if you’re six months, twelve months, eighteen months, away from getting yourself a loan, make sure you get these practices right now.

Don’t change your job

First one, is don’t go and change jobs or go into a new industry prior to applying for your home loan. This will inevitably delay things. You’ll need to factor in probationary periods, being there for certain amount of time, and checks and balances to ensure that your job is actually stable. So, stay where you are for the short term, get yourself the loan, and then make the changes from a job perspective.

Don’t get yourself into more debt

I can’t stress this enough. Don’t go and apply for personal loans, credit cards or car loans. If you buy a new car three months out from getting a loan, it doesn’t look good on your credit rating and it won’t help you in any way shape or form with the Banks. Reduce your credit card limit if you’ve got one, ideally you’re chopping it up and not using it in preparation to get yourself a loan.

Don’t bypass a sophisticated Mortgage Broker

You absolutely need a sophisticated mortgage broker (as I tell you all the time) to go into bat for you and to shortlist around three or four lenders.  Once the best and most probable Lender is selected, THEN you can put in one application to the chosen lender. Whatever you do, DON’T go and put in three or four applications to the BIG 4 in the hope that one of them will come off, all it does is trigger red flags to the banks, and gives you red marks against your name, in the their eyes.

 

So my main points, keep working towards putting yourself in the best position to get your a loan, then after that,if you need that new car as an upgrade, then go and do it afterwards, don’t do it before. Don’t change jobs before you apply for your loan – and I reinforce this because lending conditions change all the time and we need to look favorably when it comes to getting ourselves a loan.

Off you go.

If you want to learn more about how to best enter the property market and keep your finances in order, check out my Solvere Online Academy.

John Pidgeon