As interest rates have risen over the past couple of years, the borrowing capacity of prospective mortgage applicants has reduced. This has meant that now, more than ever, it is imperative to have all your ducks in a row to present the best possible application to a lender.

Here are some savvy tips to get the most out of your application and ensure the optimum outcome from your lender of choice and get your loan approved quicker.

Partner with an experienced Mortgage Broker.

Probably the most obvious point to make but important to make none-the-less. Your mortgage broker should have a demonstrated track record of experience and knowledge. If there is a possibility that your application may not be conventional or complex, then you need someone who can still get a great outcome with minimal stress.

Be up to date with all of your commitments

It is imperative to take the time to ensure all your current commitments are in order and that all your payments are up to date with nothing overdue. Stellar payment history bodes well with a prospective lender.

Check your credit report

It is very quick and easy to get a copy of your credit report and it’s a great idea to check to make sure there are no mistakes on it. If there are inconsistencies on it you can get on the front foot with the credit reporting agency to have them removed so it is clean for your application.

Check your expenditure

Take the time to audit your bank statements and identify where your money is going to as the lender will most certainly will be doing. If you have subscriptions or memberships you no longer use, cancel them, to reduce your outgoings to improve your borrowing power. Also, by looking at your expenditure in black and white you may also be able to identify areas that may be trimmed so your disposable income is higher.

Pay off debts

If you have the capacity to do so, pay off any outstanding debts you may have. This could include personal loans, Buy Now Pay Later facilities or even a HELP debt. The fewer liabilities you have the greater your ability to borrow.

Reduce credit limits

If you have credit cards, the bank will assess your ability to borrow based off the credit limit not what you owe or what you use. For example, you may have a credit card that you have never used and probably never intend to, but the bank will still take that limit into consideration. The best thing to do would be to cancel the card if you don’t need it or reduce the limit so it’s impact on you borrowing capacity will be lesser.

Demonstrate genuine savings

Being able to show a lender that you can save money over time by making regular deposits will bode well particularly if you are looking to purchase a property with a high loan to value ratio and need to show funds to complete. Lenders like to see these funds in you account for several months.

 Have the correct documentation upfront

Be vigilant with ensuring that everything you provide to your mortgage broker is current, up to date and legible. Your assessment will be quicker and more efficient when everything forwarded to them is correct.

Be honest and transparent

If you know the bank may discover inconsistencies in your statements such as a couple of late payments or a past blemish on your credit record, then be upfront from the start. Getting on the front foot and acknowledging anything that the bank might flag will help with the efficiency of the application assessment and demonstrate that you are not trying to hide anything. This will stand you in good stead for a formal approval.

Not everyone has a straightforward position when it comes to applying for a mortgage and as banks are quite thorough in their assessment process, it is prudent to put yourself in the best possible position from the start. Your mortgage broker will be able to guide you every step of the way through this journey and ensure you are well placed to get a great outcome for your requirements.

Speak to our Blackburne Mortgage Broking team for more information.