You’re excited to buy your own home. Finally, you can nail paintings in without fear. It’s walking distance from your best mate. It’s even got your lucky number on the letterbox.

So why is applying for a home loan so daunting?

There’s a lot riding on getting it right, and there are no guarantees. Our home loan application checklist will help you get organised – and the more prepared you are, the more likely it is you’ll get a thumbs-up from your lender.

1. Make sure you’ve got your paperwork

That means:

  • At least two consecutive payslips;
  • A copy of your latest PAYG Summary or Notice of Assessment from the ATO;
  • Any bank statements showing other income, like Centrelink payments;
  • Your accountant’s details, if you’re self-employed; and
  • Evidence you’ve saved for your deposit.

Likely there will be more information needed, depending on your assets and liabilities, but above is a good start.

2. Prove that it’s you

Yep we know – more paperwork. You’ll need at least 100 points of ID when you apply. A passport is a good start, plus a combination of your driver’s licence, bank cards, Medicare card or birth certificate.

3. Figure out your financial position

We want to make sure you can afford to make your repayments. Being eligible for a home loan isn’t just about how much you earn – we will also take into account other assets and how much you spend.

Gather your paperwork (are you sensing a theme?) for:

  • Any other loans or debts you have, like car finance or personal loans;
  • Assets in your name; and
  • An estimate of your living expenses, including how much you’re really spending on those good corn chips.

4. Check out your credit report

The good thing here is that we’ll help you do this. Lenders want to see a clean credit report before they’ll approve your finance. We’ll help you access your credit report and discuss anything with you that the lender will want to know.

It’s ok if you have some blemishes. These days there are many alternate lending options and we’ll help you find the right solution.

5. Clean up your wallet

When it comes to credit cards, lenders will ask you to state the total limit on each card ¬– that’s the amount of credit available to you to use. Even if you don’t owe anything, your lender will probably still consider the total limit to be a liability. You can boost your application by paying off and cancelling unused cards before you apply.

And don’t forget store accounts and retail facilities like Afterpay. Lenders don’t miss these and will want to see that you’re been making all your repayments on time.

6. Know what you want to apply for

We’ll help you choose the home loan and loan term you want. Before you do that, make sure you’ve figured out which one is right for you . Our lending specialists  can help you understand the different features, rates and fees, so you can get the right product first go.

7. Brag about your new home

This is the exciting part. Our lender will ask about the security for your loan – that’s your new home. It will all start to feel real now. Supply details in writing, including the signed contract of sale. If you’re building, you’ll need any council permits and your fixed-price builders contract.

8. Have your legal eagle lined up

As we get to the end of your application, we’ll ask for details of your solicitor or conveyancer. Having your legal professional lined up before you’re ready to apply for a loan will speed up the paperwork.

9. Pay attention to detail

There are a lot of requirements for a home loan. Giving yourself the best chance of success means getting it all spot on. Every detail on your loan application form should match up and cross-reference precisely. We’ll take you through our thorough fact find process tomake sure we get everything right to help get your loan approved on time.

10. Or … choose a simpler option

Want to skip to the end? Just let us do it for you. Our lending specialists are on hand to make it easy and answer any questions you have. Too easy.

Applying for a home loan doesn’t have to be difficult. Buy a fancy ring-binder folder, make copies of everything you submit, and take it one step at a time. You’ll be in your new home before you know it.

It can start with a simple planning session. You may not be ready now but armed with a plan and more knowledge you can set achievable goals!

We’re available for a simple chat either in person, phone, or online.

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We hope you found this article helpful. If you'd like to discuss it further please fill in the form below and we'll be in touch.

This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice. Credit criteria applies to any loan application.