Pulling together the information for a
loan application can seem daunting, and may even feel a little invasive.
If you’ve never applied for a loan before,
gathering all of your most personal financial information – such as your credit
card statement which reveals exactly how many takeaway coffees you’ve had this
month – to hand over to a bank can seem daunting.
However, much like a trip to the doctor
for a physical, a loan assessor has seen it all and chances are good that
you’ll be well within normal spending parameters.
So, if you’re organising for your first loan application, it’s best to be prepared.
Here are some questions your lender will
ask, and our best tips to ensure you’re ready to answer.
do you earn?
This is an obvious one and easy for you
to confirm. Gather digital copies or print hard copies of your payslips.
The payslip should be no older than
three months and should include a year-to-date figure paid.
If you have an irregular income, a letter
from your employer clarifying your remuneration arrangements would be an
excellent addition to include.
Additional income streams, such as
rental income, investment or dividend income, or foreign income will also need
to be demonstrated with at least three months of documentation.
This is the same for overtime and
allowances, if these form part of your income, a minimum of 3 months history is
likely to be asked for.
And if you are fortunate enough for your
employer to pay you a bonus (or bonuses), then you will need a 2-year history
of these for a lender to be able to verify this income.
If you are self-employed, then you’ll
need to have your financial statements and personal tax returns at the ready
for the last 2 years to be able to prove/verify your income from this source.
I know this all sounds like a lot, but
being prepared is the key.
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the cost of a property manager.
Join now and the
cost is less than a cup of coffee a week to manage your rental property
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Friday, 18 June 2021