Getting a mortgage approval can be both an exciting and a stressful time, but it doesn’t have to be. Follow our guide for tips and tricks to ensure success.
1. Communication
Navigating the world of home loans can be made a lot easier with open communication with a mortgage advisor. Remember, they’re there to help! Book an appointment and be completely honest with them - where you’re at in the process, what you’re worried about, interest rates etc.
2. Budget
A priority when in the process of a mortgage approval is knowing how much you can realistically afford to spend. You’ll find many online calculators that you can use to work out your monthly budget and mortgage repayments, or you can give it a go yourself by being really honest about how much you already spend and how much you can afford to drop.
Mortgage repayment calculators let you see how much you have to pay every month when you enter the house price, deposit amount and interest rate. This might help to give you a realistic look into how much you can afford.
3. Deposit
Getting your deposit together is another exciting but scary part of getting your mortgage approved. Most people aim for at least 20%, but there's options like the First Home Loan for as little as 5%. If this is your first property, it’s likely that the money will come from savings and KiwiSaver, but you might qualify for grants to help, so definitely check if you’re eligible.
4. Lender
Make sure you do some quality research before choosing a lender. You might have already decided to use your main bank, but don’t close yourself off from shopping around. Mortgage brokers make their money from banks, so be brave and introduce yourself to one, especially if you have bad credit history and might need the extra help to ensure mortgage approval.
5. Pre-approval
Before searching for properties you may fall in love with and then not be able to afford, consider getting a pre-approval from a lender. This is an agreement from the bank that you can borrow a specific amount. This is an important step before making offers on properties as it gives you some much needed peace of mind.
If you want some more help getting a home loan or mortgage approval, reach out today.
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