How do I apply for home loan pre-approval?
To apply for pre-approval, there are a number of steps a borrower must undertake in order to be approved.
#1 Firstly, shop around and compare loans:
It’s smart to shop around for multiple lenders to make sure that you get the best deal. If you’re unsure, a Lendi Home Loan Specialist can help you find the right loan for your specific situation.
#2 Complete an application:
This will include listing your income, expenses, assets, and liabilities. You can easily do this online with Lendi.
#3 Provide supporting documents:
- This documentation helps the lender assess your profile. It typically includes:
- Identification such as a passport, driver licence or birth certificate
- 2 most recent payslips
- Most recent group certificate / PAYG summary
- Loan statements for any existing loans you many have e.g. credit cards, personal or car loan, home loan
#4 Proof of funds:
You’ll also need to provide the lender with proof of your funds i.e recent bank statements, term deposit, equity, shares, or a gift letter from family. The following needs to be displayed on the document for it be acceptable to the lender.
Your name, or the name of an immediate family member
The funds available
A recent date, no older than 4 weeks
#5 Do your savings qualify:
Check that your lender considers your funds as savings. For instance, money saved under the mattress may not be acceptable. Ask a Home Loan Specialsit if your savings qualify.
#6 Ability to complete the purchase:
Make sure that you have the necessary funds to cover the initial costs of lender fees, stamp duty and the deposit in order to complete the purchase. Your Home Loan Specialist can provide you with an accurate estimate of these costs.
Related: A guide to the upfront costs of buying a home
#7 It’s up to your lender:
Next, your chosen lender will assess your capability to pay back the loan. If all goes to plan, they will then grant pre-approval.