Simple Guide to Eligibility for Home Loan

Simple Guide to Eligibility for Home Loan

One of the first steps when applying for a home loan is to make sure that you are eligible for one. Meeting the criteria of your lender is an important aspect in the home loan process as this is your key to home ownership.

With the advent of the internet, banks and credit unions are not the only source of mortgages today. You can now easily apply for a home loan online with an online lender such as loans.com.au.

There are a number of good reasons why you should consider applying for a home loan online, here are some of them:

  • Online lenders can offer more competitive rates than traditional lenders because they don’t have the expenses of physical branches.
  • Online home loan applications can be done from the comfort of your home so there’s no need to go to a lender physically.
  • Applying for a home loan online can be done anywhere and anytime, as long as you have a smartphone, laptop, desktop, or tablet with internet connection.
  • The process of your home loan application is quicker because your online lending specialist doesn’t need to go through physical documents, and you don’t need to attend time-consuming meetings.
  • Lastly, it’s very easy to access your home loan information just by visiting your lender’s website, or through their smartphone app.

To apply for a home loan online you will start you off by filling out an application online, and booking an appointment with a lending manager. You will also need to provide necessary documents so that lenders can assess if you’re eligible for a loan, and to determine your borrowing power.

The types of documents that most lenders will require are: proof of income such as three months of your payslips. If you’re self-employed, a copy of your personal income tax returns and full financial statements for the last two years. Plus evidence of any other sources of income such as rental properties or shares.

Other than your income, you’ll also need to provide a list of your assets and liabilities. Your assets can be the vehicles you own, your term deposits or savings accounts, and other properties you own. Your liabilities are your ongoing repayments for debts such as credit card, car loan, or any other personal loans.

The requirements for home loan eligibility will vary from lender to lender, as well as from borrower to borrower, so it’s best to ask your lending specialist about the necessary documents and requirements needed so you can better prepare for your home loan application. 

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