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    ing, and what additional information you can provide to support your loan application.

    Knowing the five C’s of lending can help you with this: Character: stability, credit history, intention to repay the debt. Capacity: can the borrower repay the loan? Capital: what’s the financia

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    All organizations in the mortgage industry require a prospective borrower to fulfill their selection criteria before they will approve a home loan. Traditional lenders tend to have more stringent criteria; the non-conforming lenders are a lot more flexible, and the mortgage managers are somewhere in between.

    Before deciding to apply for a home loan, there are several things you can do to prepare for your meeting with your mortgage broker or lender to help then and you through each stage of the application process.

    Know your finances
    Get an accurate picture of how your personal finances stand now, and have a plan for the future. Be able to show your monthly income and expenses, your savings and investments, any personal loans and leases, what’s in the bank, on the credit card, etc. Tips: Get help from an accountant or financial planner; use one of the inexpensive personal finance software packages available; prepare a budget.

    Think Like a Lender
    Put yourself in the lenders’ shoes and think about what information they’ll be asking you, what evidence you will need to provide, what qualities they’ll be seeking, and what additional information you can provide to support your loan application.

    Knowing the five C’s of lending can help you with this: Character: stability, credit history, intention to repay the debt. Capacity: can the borrower repay the loan? Capital: what’s the financial

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    somewhere in between.

    Before deciding to apply for a home loan, there are several things you can do to prepare for your meeting with your mortgage broker or lender to help then and you through each stage of the application process.

    Know your finances
    Get an accurate picture of how your personal finances stand now, and have a plan for the future. Be able to show your monthly income and expenses, your savings and investments, any personal loans and leases, what’s in the bank, on the credit card, etc. Tips: Get help from an accountant or financial planner; use one of the inexpensive personal finance software packages available; prepare a budget.

    Think Like a Lender
    Put yourself in the lenders’ shoes and think about what information they’ll be asking you, what evidence you will need to provide, what qualities they’ll be seeking, and what additional information you can provide to support your loan application.

    Knowing the five C’s of lending can help you with this: Character: stability, credit history, intention to repay the debt. Capacity: can the borrower repay the loan? Capital: what’s the financia

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    cture of how your personal finances stand now, and have a plan for the future. Be able to show your monthly income and expenses, your savings and investments, any personal loans and leases, what’s in the bank, on the credit card, etc. Tips: Get help from an accountant or financial planner; use one of the inexpensive personal finance software packages available; prepare a budget.

    Think Like a Lender
    Put yourself in the lenders’ shoes and think about what information they’ll be asking you, what evidence you will need to provide, what qualities they’ll be seeking, and what additional information you can provide to support your loan application.

    Knowing the five C’s of lending can help you with this: Character: stability, credit history, intention to repay the debt. Capacity: can the borrower repay the loan? Capital: what’s the financia

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    er; use one of the inexpensive personal finance software packages available; prepare a budget.

    Think Like a Lender
    Put yourself in the lenders’ shoes and think about what information they’ll be asking you, what evidence you will need to provide, what qualities they’ll be seeking, and what additional information you can provide to support your loan application.

    Knowing the five C’s of lending can help you with this: Character: stability, credit history, intention to repay the debt. Capacity: can the borrower repay the loan? Capital: what’s the financia

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    ing, and what additional information you can provide to support your loan application.

    Knowing the five C’s of lending can help you with this: Character: stability, credit history, intention to repay the debt. Capacity: can the borrower repay the loan? Capital: what’s the financial position of the borrower? Collateral: what security is offered? Common sense: will the application and use of funds make sense to the lender?

    Tips: Do some research – talk to people you know who have applied for a loan and ask them about their experience, grab a book on mortgages or use the internet. Get hold of a loan application form or a mortgage document check list. Talk to an MFAA member — they’re making applications to lenders constantly and work for you to make the loan application process as easy and quick as possible.

    Review your credit reference
    Everyone in Australia has a credit reference, which is held by a company called Baycorp Advantage. It’s a record of your credit history, going back five years, detailing any loan enquiries or applications you’ve made, if there’s been a default on a credit card or loan, a bankruptcy, even if you have an outstanding bill, etc. You can buy a copy of your credit reference from www.mycreditfile.com.au Lenders will look at your credit reference in the loan application process; a negative reference will affect your ability to borrow money. Tips: Be honest and upfront

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