When applying for home loans, income, savings, job stability, and age are some key factors that a lender will consider. In addition, your credit score—which reflects your credit history—can play a role in the approval process, as well as the interest rate and deposit required.
Your credit score is a snapshot of your credit risk at a particular time. It’s a number that represents your creditworthiness to lenders based on your credit history. A higher credit score means you’re a lower-risk borrower, which could lead to a lower interest rate on loan. A lower credit score could lead to a higher interest rate, and you’ll have a harder time getting approved for a loan.
Lenders usually assess the viability of home loans through the following criteria:
Your current financial situation includes your income, spending habits, savings, and ability to repay the loan.
Your borrowing history is a record of all the money you have borrowed in the past. This information is important to lenders because it shows them how you have handled borrowing in the past and helps them to predict how you will handle borrowing in the future. If you have a good borrowing history, it will increase your chances of getting approved for a home loan.
Lenders will want a steady employment history, so if you have changed jobs frequently or have had periods of unemployment, this could count against you. They will also look at factors like job security and stability, so if you work in an industry prone to lay-offs or otherwise unstable, this could also affect your chances of getting a loan.
In short, a lender can help you understand how much you can afford to borrow based on the amount you have saved.
Here’s where it gets crucial. Depending on their ratings, potential homeowners can either easily get home loans in Australia or not:
You have some negative aspects in your credit history, which may make it difficult to get a mortgage with a low-interest rate. However, your current income and financial situation are relatively healthy, which could help you find an unsecured personal loan from a first-tier lender.
Most lenders consider you a reliable borrower and will be willing to consider your loan application
Need help finding a guarantor for home loans in Australia? Then reach out to us here at Shore Financial. Our brokers work for you to get the best loan guarantor possible. Talk to one of our members on our website!
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