How to get lenders to fall in love with you
Lenders are in love with borrowers who show good financial habits, particularly now in a shakier-than-usual economy.
Good habits are gold. And it’s never too late to start, even if business is down, your hours have been cut back, or you’re receiving government assistance. I can help you get into a position where lenders still consider you a possibility.
So how do you get lenders to love you in this strange economic climate?
Broadly speaking, home loans are most likely to be leant to borrowers who…
- Are able to make regular repayments
- Have assets to borrow against, like properties, vehicles, and even super
- Have few debts including credit cards, university fees, and other loans
- Have a deposit ready to go… the bigger the better
- Have chosen property in a good location (not a risky region)
- Don’t have massive monthly expenses chewing up their income
- Have a good credit score (don’t know your score? I can get it for you
- Have proven they know how to budget
- Are working and likely to work for years to come, with a stable and predictable income
- Are residents of New Zealand
*This doesn’t mean to say you can’t get a loan easily through me as your broker, it just means we need to jump through a few additional hoops together!
If your circumstances have changed during COVID, what can you do?
- Chat to me about a simple and successful 3-month-long budget
- Consolidate debts… create one central payment for all your loans
- Access grants available to buyers in this market
- Speak to my wealth adviser colleagues about restructuring your finances
What will you need to show lenders if you want a loan this month?
- Details of other loans, credit cards and debts
- A completed application form (I do this with you)
- Form of ID; passport, license, letters – you know the drill
- Bank statements (ARGH!).Half a year’s worth! So let’s make them sparkle!
- Payslips from work if you’re a staff member
- Tax returns from the last two years if you’re small business owners.