Getting a loan can be a complicated process, and there are a number of things a lender will consider when they are deciding whether to lend you money. These days, many lenders are undertaking credit scoring, which involves a complex assessment of many different aspects of your financial situation (both past and present), which determines your desirability as a customer for that lender.
All of these factors can be loosely categorized into four C’s:
This essentially refers to your capacity to repay the loan. To establish
your capacity, the lender will assess your income and expenses, your
field of employment, your duration in that employment, your previous
employment history, and numerous other things, basically with the goal
of answering this question: “Can you afford the loan?"
At
Beyond Home Loans we will assess the answer to this question before submitting an application.
In return for lending you money, a lender will want some collateral. In
the case of a home loan, this would be the property you are offering as
security. They will usually order an independent valuation of the
property to ensure that it meets their requirements. If a property is
unusual, you might find that lenders will be less inclined to lend
against it, or will reduce the amount they will lend.
At Beyond Home Loans we can easily determine this for you.
In addition to proving that you can afford the loan repayments, you also
usually need to contribute a deposit towards a purchase. Even in the
days when lenders happily lent 100% of a property’s value, applicants
usually still needed some form of deposit in order to cover the costs
associated with buying a property. Nowadays, it is ideal to try to
accumulate at least a 5% deposit, plus enough to cover costs.
Please contact us to find out what deposit you might need.
This is an aspect of loan assessment that has become more important in
recent times. A lender will now try to build a profile about your
character as a borrower. This factors in many things, from the time you
have spent living at each of your residential addresses to what credit
enquiries you have made in recent years. A character assessment is
designed to establish how stable an applicant is in their life, and how responsible they are with their debts.
Our aim at
Beyond Home Loans is to preempt this and emphasise your strengths as an applicant.