This will show if you’ve been naughty or nice, from a credit point of view. You can get this for free just by being happy to wait a few weeks, or get it straight away by paying for it. If you are still reading this the mending project may take some time so you might as well get the free one. When you get it you will see anything negative and can go to work on improving these items. That is another subject, to be looked at separately.
Compile a household budget.
If you already have a comprehensive one and it is working, you are well on the way. If you don’t have that, and the process looks daunting, decide here and now you will do the hard yards! That is the only way to come up with a sound application. You must do so, because if you make an application and it is rejected that is another big negative on your credit rating and you will have to work even harder to have any chance of making it in future. That is another subject, and is discussed below.
Rearrange your banking.
This will be something of a complicated procedure for many people, but it can make all the difference to your application.
Once upon a time (heard that old phrase lately?), you could tell the lender’s representative figures that could be included in your application and that would be acceptable. Not now!
One of the biggest criticisms made of banks was the lack of genuine assessment of the applicant’s ability to handle the loan payment, by not gathering enough data on their actual spending. This is the main reason for that failure rate of 5% jumping to 40%!
So please take the trouble to treat this matter very seriously! Remember a failed application will also show on your credit rating as a BIG negative! This is another separate matter, and is discussed below.
Repair your credit negatives.
This depends on what actual problems your credit analysis shows.
This is too complicated an area for these notes and professional advice should be sought.
Often it looks obvious to approach the entity that has put up negative data, but still get professional advice before doing this.
Check your application data and WAIT!
Communicate with someone who really actually GENUINELY can give you a good indication of where you stand for finance before you make an application. It is too easy to stuff this up. There can be things other than what is explained here that can make all the difference – these notes are definitely NOT comprehensive!
Most people can and should improve their chance of success by doing each of the steps covered in this set of notes to start with. Only when you have a long enough set of statements showing the performance of these accounts (whether that is a financial quarter or a half-year as you are advised) and have these records printed out can you then apply for a property loan.
All of this advice applies to both home loans and investment property loans!
