All organizations in the mortgage industry, a potential borrower to meet their criteria before they approve a home loan. Traditional lenders have more stringent criteria, the non-conforming lenders are much more flexible, and the mortgage managers are somewhere in between.

Before deciding to opt for a loan, there are some things you can do to make your meeting with the mortgage broker or lender to help you through the different phases of the application process.

Know your finances

Get an accurate picture of how your personal finances, and have a plan for the future. Can make your monthly income and expenses, your savings and investments, no personal loans and leases, which in the bank on the credit card, etc.
Tips: Get help from an accountant or financial planner, use a cheap personal finance software packages available to a household.

Think Like a Lender

Put yourself in the shoes lenders and what information they ask you what evidence you need, what qualities they are looking for and what additional information you can to support your loan application.

Knowledge, the five C's of credit can help you with this: Type: stability, credit history, the intention to repay the debt. Capacity: Can the borrower the loan? Capital: What is the financial situation of the borrower? Security: security, what is offered? Common sense: the application and use of funds make sense for the lender?

Tips: some of the research - talk to people you know who is a request for a loan and ask them about their experiences in a book on the mortgage or use the Internet. You hold an application or a mortgage loan document checklist. Talk to an MFAA member - they are the applications for lenders and constantly working for you for the loan application as easy and fast as possible.

Check your credit reference

Everyone in Australia has a credit, which is owned by a company called Baycorp Advantage. It is a record of your credit history, going back five years, with the loans, requests or applications that you have made, if there is a default on a credit card or loan, a bankruptcy, even if you have an outstanding Bill, etc. . You may obtain a copy of your credit reference from www.mycreditfile.com.au
Lenders will look at your credit reference in the terms of the loan application process, a negative reference to your ability to borrow money.
Tips: Be honest, and in advance - it is best with the lender or mortgage broker finds you, not your credit reference, if there are any problems with your credit history. If there has been a problem, explain why they occurred, and how to get it corrected. Do not make too many applications for finance - any shows on your credit report and multiple queries can be equated to a problem. No arrears on bills, credit cards or customer cards. If you believe that there will be inconsistencies or errors on your credit reference you are able to meet this challenge.
Non-conforming lender, the applications are used by people with serious credit issues. However, they still expect the borrower to explain the problems that occurred and the steps taken or to be taken to correct them.

Reduce plastic --

The lender will want to know how many credit or loyalty cards and you have the limits on each card - which you have the potential to spend, not what you owe or how good you were on repayments.
Tips: Elimination of credit or loyalty from you. Reduce the limits for the credit and loyalty you.

Save, save, save

By demonstrating a good and constant savings you show the lender you can create a mortgage. Generally lenders want to see a minimum of 5% saved regularly for more than six months or more.
Tip: Due to the possibility of a deposit of 20% on the ownership of the borrower to avoid the lender, the lender to take out mortgage insurance (LMI). LMI criteria are more stringent and less flexible and the insurance is usually not as receptive as lenders when it comes to credit problems.

Jennifer Schelbert A. Fin. / Dip.Fin.Serv - FinMBM is a director of Mrs. Mortgage, a licensee of Choice Aggregation Services, and a full member of the Mortgage & Finance Association of Australia & COSL.

Phone: 61 3 9315 9750

http://mrsmortgage.com.au

* Disclaimer: This article is for information purposes only and should not be relied upon as a substitute for professional or legal advice.