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First Home Buyers

Here’s the Handiest Home Checklist for New House Buyers

Are you eager to buy your first home but unsure about what application documents you’ll need? The proper documents can mean the difference between getting approved for a home loan and getting rejected, which is essential. This checklist can help you organise the required documents and why they are crucial.

Assets and Liabilities Documentation

A lender may ask you for documentation to help show that you have enough assets to pay your debts. Some of the documentation needed includes:

  • A detailed list of all of your assets (for instance, your house, car and boat)
  • Any personal loan statements
  • Your debit/credit card statements
  • Any store card statements
  • Any superannuation statements (for Australians)
  • Information about the stocks that you own
  • Account statements over the past three months for loan, savings and transaction accounts (deposit, checking and money market) that you have

Expense Documentation

Lenders will likely ask for information about your monthly expenses when applying for a home loan. Depending on the lender, this could include:

  • Documentation for your rent or board payments
  • Details about child support payments
  • Information about tuition and other qualifications
  • Insurance payments (including life, health, sickness and personal accident insurance)
  • Medical and health costs (excluding insurance)
  • Private or independent primary and secondary schooling
  • Utility bills
  • Recreation and entertainment bills
  • Telephone and internet payments or streaming bills
  • Transport expenses (such as gas and maintenance bills for cars or other vehicles)
  • Any other applicable monthly expenses

Income Documents

Much like personal IDs (which we’ll discuss later), income documents prove to institutions that you are a legitimate working, tax-paying citizen. Because everyone’s income situation is different, lenders need different types of documentation to approve an application. You should gather the required documents before applying to avoid missing anything and empower lenders to find the right mortgage for your needs.

Here’s what your lender needs based on your most common income sources:

  • Two-year tax assessments from the Australian Taxation Office (ATO).
  • A signed lease and most recent rental statement (if you are a tenant) or most recent bank statement (if you own the property).
  • Evidence of this income was earned in the past 12 months. This is a general guide, so check with your lender to see what they require.
  • Base PAYG salary: 100 percent accepted for full time and part-time work.
  • Some lenders will take up to 100 percent overtime pay; others don’t accept any. Some only receive 80 percent overtime pay, depending on how long you’ve been at your current job.
  • What type of allowance you get: Some lenders will take up to 100 percent of budgets; others don’t accept subsidies.

Personal IDs

Lenders require documentation to prove your identity as a legitimate Australian resident and citizen via primary photo identification. These can include your current:

  • Driver’s license
  • Passport
  • Proof of Age Card or any State or Territory issued photo card

If you can’t provide at least one primary photo identification, your lender will use secondary identification documents. These could include your:

  • Birth certificate
  • Citizenship certificate
  • Debit/credit card information
  • Medicare card
  • Recent utility bills in your name and current address
  • Tax assessment notice

Conclusion

A new home is a significant purchase, hence the need for the above documents. Once you’ve gotten them squared away, buying a house or applying for a mortgage will be quick and easy. Just ensure you have these documents on your person when the time comes.

Shop around for your ideal mortgage at Shore Financial today! We’re Sydney’s fastest-growing mortgage brokerage that helps Australians create wealth through property. Book your appointment today!






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