FINANCIAL
Be a low-Risk
Borrower
prospects
and better your home loan
I
f you’ve decided to become a homeowner, the
first thing you need to do is find out whether
you have a good chance of being approved for
a home loan – or whether lenders will consider you
too “high-risk”.
“It’s all very well to start looking at online listings
or visiting show houses to find your dream home. But
you first need to work out how much you can afford
to spend, how you plan to finance your purchase,
and then whether the banks will even consider you
for a home loan,” says Shaun Rademeyer, CEO of
BetterLife Home Loans, SA’s biggest mortgage
originator.
“Lenders are always on the lookout for low-risk
borrowers – that is, consumers with good credit
records that show they have be diligent about
repaying previous debts; consumers without a too
much current debt will make it difficult for them to
afford another monthly instalment; and consumers
who have a proven and regular source of income.
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Residential Handbook 2016/17
“If you don’t meet these requirements they will put
you into a higher risk category, which could mean
that you need to put down a bigger deposit before
they will agree to give you a home loan, or that they
will charge you a higher rate of interest on your loan,
or that they will refuse to grant you a loan altogether.”
Even if you think lenders might consider you to
be a “high-risk” now, it is not the end of the road
for your home ownership plans. “You don’t have to
resign yourself to being a tenant forever. Work with a
reputable mortgage originator like BetterLife Home
Loans that can advise you how to become a lower
risk prospect, and will then prepare, motivate and
manage your application in a way that ensures its
best chance of success.”
Rademeyer says some of the most important steps
for potential borrowers to take before they apply for
a home loan include the following:
*Pay all your accounts on time – that is, before or
on the due date. This may not seem like a big deal but
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