Anyone thinking of getting a home loan right now may be turning green with envy at their friends who were approved some six months ago. Why? Because things have got a lot harder in the finance space with the credit squeeze.
Did you know that your credit card could negatively affect your home loan chances? We all know that you need to pay your bills on time, but I bet you didn’t know about other things lenders are now looking at?
Lenders are now going through home loan statements in greater detail than ever before – line by line and comparing your actual spending habits to the living expenses you submitted in your home loan application. Yes that’s right, that’s the level of detail that is the new norm! And lenders are putting much more weight on certain items than others. For example, lots of purchases relating to gambling including lotto or the Casino and even alcohol can spell trouble and place you as a higher risk in the lenders eyes.
Being upfront with your expenses will help with your application so think about including other expenses such as childcare, school fees and even medial expenses if you believe that they will be consistent throughout the year.
By being aware of what lenders are looking for will give you a better guide of your chances of getting a loan…and maybe if you do play the lotto you may consider pulling out money from the ATM instead of using the card!
If you want to give yourself the best chance to succeed when applying for a home loan, contact HomeBound. We’ll put you in touch with one of our finance experts.