6 Ways to Optimise Your Chances of Home Loan Approval

Getting approval for a home loan can be stressful. 
Luckily, the team at ZENRG Finance are there to help you with your journey.

We’ve put together a list of key things you can do to increase your chances of getting your home loan approved!

Save regularly to maximise your deposit.

Having a reasonable deposit towards your new home is one of the most important factors in getting your home loan approved. A larger deposit means you’ll have to borrow less and are more likely to meet the lender’s minimum loan-to-value requirements. You’re also indicating to the lender that you are financially disciplined enough to meet monthly mortgage repayments if your home loan is approved - so get saving!

Build a solid credit score. 

Another key factor a lender will consider when you apply for a home loan is your credit score. Your credit score reflects how often you apply for credit and whether you have any defaults, judgments or infringements recorded against you, so maintaining consistent repayments is essential. A higher credit score suggests that you’re less likely to default on your mortgage repayments, and this is what lenders are looking for when approving a home loan. 

Live within your means. 

When applying for a home loan, lenders will ask to see copies of recent bank statements to assess how well you can live within your budget. In the months leading up to your application, track your spending, avoid taking on any debt, and try not to make any big purchases. You want to demonstrate to the lender that you can afford to pay your bills, save money and make regular repayments on an approved loan. 

Get rid of unnecessary debt.

The less debt you have under your belt, the more likely it is that you are able to focus your resources towards paying off your mortgage each month, and the more you appear to be able to manage your money responsibly. To give yourself the best chance of getting your home loan approved by a lender, consider paying off as much debt as you can before applying. 

Postpone that career change.

A lender wants to see financial stability, and changing careers (or even jobs) can place you in a position of uncertainty, as temporary as it might be. Most lenders will ask to see copies of your most recent payslips as proof that you’re earning a consistent income and can make monthly repayments on your mortgage. Demonstrating financial stability should be a top priority if you want to give yourself the best chance of approval!

Target a lender that suits your needs.

Each lender has slightly different criteria for how they’ll assess your home loan application, so it’s important to look for a broker that will take time to understand your individual needs. This ensures that you’re getting all the information and guidance you need to support your application. At ZENRG Finance, we compare a wide range of lenders and home loan products to find an option that best suits your circumstances - giving you the best chance of approval. 

Want to learn more about what you can do to increase your chances of getting your home loan approved? ZENRG finance is here to help.

Need some help finding the home loan that is right for you?

Our mortgage brokers are available to help you. Enquire now.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.