Home loan requirements:
Home loans requirements are important factors that client need to consider before they apply for home loan. First time home buyers need to be aware of certain issues to understand lending criterion to safe guard the approval of their first time buyer home loans. The finance group have been assisting clients for a long to successfully meet their home loan requirements.
Documentation: ( home loan requirements)
Documentation is the most important home loan requirements that need to be considered for first time buyer home loans. Approval of the home loan mainly depends on documentation. client need to be aware what documents will be requested by the lender before they apply for a home loan. Documentation for home loan can differ bank to bank. Some bank accept flexible alternatives for clients who face difficulty to arrange any documents.
| Proof of Income|| Full doc loans 2 years full financials with tax returns are mandatory. Notice of assessment is not required for some lenders. 1-3 most recent computer generated pay slips supported by recent year PAYG summary if required.|
Low doc bank loans 12 consecutive months BAS's is mandatory, recent 6 months trading statements may be required.
Low doc non bank loans 3-6 months trading account statement is mandatory. plus accountant letter.
No doc only accountant declaration and borrower's repayment declaration required.
| Other supporting documents|| Mandatory for all applicants:|
For Construction :
Employment status: ( Home loans requirements)
For PAYG employee client can not be on probation and minimum of 3 months will have to be in the same job. If less than 3 months in current job but permanent position then job contract will be required with employment letter. Loan subject to LMI client will have to be in the similar industry for minimum of 2 years to have LMI approved. For casual jobs minimum 12 months need to be in the same job and income need to be proof by PAYG summary. To include the income from 2nd job client will have to do 2 jobs for a certain period of time up to 12 months depending on lender.
For self-employed applicants bank offer loans if client is in similar industry for minimum of 2 years. ABN need to registered for minimum of 12 months.
For non bank loan if ABN is registered for minimum of 6 months client can apply for low doc home loan loan with accountant letter and minimum 3-6 months trading account statements.
Deposit: ( Home loans requirements)
Minimum 5% genuine savings required for 95% LVR loans. If loan is <=90% LVR no genuine savings is required but proof of fund required to have first time buyer home loans approved. Source of deposit can be gift, savings, proceed from sale, equity of other property etc.Statutory declaration will be required for any amount of gift used as deposit for home loan/
Acceptable security: ( home loans requirements):
Maximum loan to value ratio depending on type and location of the property. If client buying a vacant land, client will have to be committed that they will start construction in 12 months. Acceptable type of security differ bank to bank. Flood effected area, contaminated property, lease hold property, less than 40sqm area of apartment, retirement village, income producing property this are commonly unacceptable properties. Acceptable properties are largely determined by LMI policy. Click here to have brief idea about commonly acceptable properties by LMI insurer.
Some specific kind of properties have LVR restrictions like service apartment, portable home, high density area, off the plan purchase etc.