3 documents you’ll need for a home loan application
Whether you're buying your first home, or delving into the world of property investment, you'll need to have all the facts on hand before jumping in the deep end. The application process to get housing finance can be relatively simple, but there are a few things you'll need to have organised before approaching a lender or a mortgage broker – especially when it comes to the paperwork side of things.
Having the right documents at your fingertips can make the loan process a whole lot smoother. The requirements will probably differ depending on the type of mortgage you're applying for, but in general, you'll need to hand over the following before you can secure your dream house.
You'll normally need at least two forms of ID, whether they be your passport, birth certificate or driver's licence, or even utility bills and notices from the tax office. Make sure you've read up on your lender's requirements beforehand – they might have a specific list of things you'll need to provide.
Buying a home is a big financial commitment not only for you, but for your lender as well. For this reason they typically need some kind of evidence of a regular wage or salary, like your current employment contract and pay slips, to verify that you can support yourself and the loan. Of course, not everybody has the same financial circumstances. If you're self-employed or a contract worker, it pays to brush up on what you can offer instead of these documents – it might mean an Australian Business Number or a signed letter from your accountant to prove you earn what you say you do.
Not only do lenders generally need paperwork that proves your income, but they often require evidence that you have a solid savings background. Your bank statements will tell your fiscal story, so make sure you've established a good pattern of savings – six months is usually a good timeframe to work from, but it could be longer or shorter depending on the size of the loan and the price of the property you want to purchase.
Once you've got all the pieces of paperwork sorted, a mortgage broker can help you find the right loan for your financial situation.