BOOST YOUR BORROWING POWER
Whether you have just begun to save for a new house or have started researching home loans in preparation for a property purchase, it is important to stay on top of your finances.
Lenders have very specific criteria when it comes to granting mortgages and how much you are able to borrow can be affected by many different things, says Loan Market.
Obvious factors like income and savings contribute to your borrowing capacity, but more obscure things like store credit cards can have an impact on a lender’s decision.
To make sure that you are putting your best foot forward, it is important to remember that any credit you have to your name will be considered by your lender so it is advisable to close any unused credit cards.
It is also recommended that you reduce the amount available on cards that you do keep in your possession.
Consolidating debt can also help to increase your borrowing capacity.
An in-depth discussion with a mortgage broker can help you determine what lenders will be looking for in your application and anything further down the track.