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Hi, I’m looking to buying a house and I will obviously need to get a mortgage. I’d hope to not spend more than 500,000 on a house. I’d say I’d have a decent savings and should be ok for a deposit by time I’m ready, I work full time (135k pa). My issue is I’ve never borrowed/owed money before and lack a credit score of any sort. How do I go about making sure I’ll be able to get a mortgage easily, while not wanting to have fees for money I don’t really need to borrow?
Responses
Hi Jade,
Whilst you won’t have a credit score, that won’t stop you being able to borrow money for a house. You would still be able to demonstrate your credit and savings behaviour by providing your bank statements and perhaps utilities and rental agreements in your name.
If you sit with an experienced finance broker they will be able to offer you a number of lenders who don’t require a credit score for an application to proceed
Best of luck finding your home
Regards
Scott
Hi Jade
Banks generally look at 2 things when considering a loan application: the ability to repay your loan and the loan to property value ratio.
If you have saved at least 5% deposit plus an addtitional 2.5% for fees you should be able to get a loan.
Speak to a broker who can provide you information and options from various banks.
Feel free to call me on 0415742082 should you want to discuss the mortgage process. No obligation.
Regards
Louis
Hi,
You can have a pre approved loan.It will be valid for 6 months. And you don’t have to pay any thing for this.
Once you decide to buy then you can proceed for final approval.
If you require any assistance let me know.
Regards,
Avijit
Hi Jade,
This is one of the biggest misconceptions that people have when it comes to borrowing money. For some reason we've been trained to think that we need a credit card or car loan etc first in order to build up a credit history before we can apply for a home loan.
Maybe we were all brainwashed by the CBA dollarmites program when we were in primary school but the reality is banks only care about two things when it comes to borrowing money:
1. What is your deposit?
2. Do you have enough income to afford the repayments?
As long as you can answer those two questions, you'll have no issues borrowing money.
Kind regards,
Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au
Hi Jade,
Such an excellent question! My peers have definitely covered the credit side of this but the biggest question you had was - HOW can you ensure this is EASY, SIMPLE and COSTS YOU NOTHING
Best thing to do is come to a broker, like me. WHY I hear you say. . .
Very simple - There are 3 reasons why
1. Brokers are FREE.
There should be NO charge for you to get them to assess your application under a wide variety of lenders guidelines to establish if you would qualify.
2. Brokers are paid by the lender once the loan settles.
This is CRITICAL because most brokers will fall over themselves to get to a loan they know they can settle (because they see the $$)
3. Brokers have a panel of lenders to choose from.
Most brokers have a panel of lenders to choose from, which is important because different lenders have different appetites and guidelines. Meaning they can generally find a home for you regardless of the situation.
Hopefully you can see the value in engaging a broker. In saying that, if we deal specifically with lenders, most lenders DO NOT charge you anything for the application you submit to them, and if there are fees they are GENERALLY taken out at settlement.
So for you- I believe the risk of loan approval is mitigated by the broker conducting solid due diligence on you and the lender PLUS they are motivated to get the loan to work because it means they get paid at settlement.
The risk of being charged - is non existent if you go to a broker who understands this is your requirement.
That being said, I believe I have a firm understanding of your initial requirements and would love the opportunity to help you through this phase.
How are you placed for a brief 15 min phone conversation to discuss your situation so we can establish the next step?
Regards
Craig Nicholas
0481 383 490
nicholasfs.com.au
nicholasfs@icloud.com