Taking Care of Your Credit History

The mortgage and finance industries aren't exactly that welcoming. Banks, lenders and mortgage managers need to implement a set of criteria before they approve the loan of a prospective buyer. Investments relating to money are a serious business and it is imperative for the industry to practice certain set of rules to make sure everyone lowers their risk and gets their money's worth.

Before applying for a loan, it is important to prepare and make sure all the requirements that your mortgage broker or lender needs are ready. Being prepared will help you get through the application process faster and easier. Here are a few things you need to remember before applying for a loan:

  1. Having a good credit history helps you become a good candidate for a loan. If you track your finances and manage it well, your lender will see it as a positive aspect on your side, meaning they can trust you enough to be able to pay your your mortgage on time.
  2. Be prepared to show statements of your financial status: monthly expenses, bank statements, existing loans, credit card statements, etc.
  3. Find out everything you need to ask your lender so that you won't miss out on important details. Likewise, it would be a good idea to think like a lender and ask yourself what information your lender would need from you and be prepared for it. Remember, the key to getting your loan approved is to make sure you meet your lender's requirements.
  4. The 5 C's of Lending (character, capacity, capital, collateral, common-sense) are very good points to consider. Are you stable, can you repay the loan, what funds will you be using to pay the mortgage, and so on are a few questions you may want to consider asking yourself.
  5. 5.Research, research, research. Ask advice from your friends or relatives who have already applied for a loan and ask about their experiences.

If you already applied for a loan, chances are you won't have a difficult time applying for a new one so long as you have kept your credit history or your credit profile clean. The qualified advisors at Rate Detective are ready to provide you everything you need to know about home loans and repayment schemes. They will even provide you with rate comparisons of Australia's top lenders, so that you can make an informed choice on your loan. Contact us today!

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Published on April 4-th, 2013 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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