Q: What do I need to provide when applying for a first home owners loan?
- Proof of Identity
To apply for a home loan, you need to provide proof of your identity, such as a driver’s license or passport. This is to ensure that you are who you say you are and to prevent identity fraud.
- Proof of Income
Lenders require borrowers to provide evidence of their income to determine their borrowing capacity and ability to repay the loan. You’ll need to provide payslips, tax returns, and bank statements to show your income and expenses.
- Proof of Savings
To qualify for a first home owners loan, you need to save a deposit of at least 5% of the property’s purchase price. You’ll need to provide bank statements and evidence of your savings history to show that you’ve saved the required deposit.
- Employment History
Lenders also require borrowers to provide their employment history, including their current employer’s details, job title, and length of employment. This helps lenders assess the stability of your income and employment.
- Credit History
Your credit history is a crucial factor in determining whether you qualify for a home loan and the loan terms you receive. You’ll need to provide evidence of your credit history, such as credit card statements, loan statements, and debt consolidation agreements.
- Property Details
To apply for a first home owners loan, you’ll need to provide details about the property you want to purchase, including its purchase price, address, and type of property.