What first home buyers need to know when they apply for finance

Before you apply for finance, the first thing you should do is to get your personal finances in check.

Before you apply for finance, the first thing you should do is to get your personal finances in check. This means making sure all of your credit cards are paid and up to date and you’re not falling behind on any other bills or payments, because overdue debts will definitely work against you and your application. Also, have a really thorough budget in place. You can expect lenders to review your monthly expenses, so you want to be able to demonstrate that you know where your money goes.

Keep an eye on your spending

Not only will lenders want to review how much you are spending, most will also want to have a look at your bank statements to examine the details. So be mindful of your spending because your day-to-day expenses will impact your borrowing capacity. If the lender sees you’re spending large amounts of money on discretionary items like shopping or takeaways, they might doubt your capacity to cut back your spending when you need to repay your loan. The best approach is to start spending like you already have a home loan. UNO Home Loans mortgage broker, Jay Ahluwalia says it’s also worth knowing that your credit cards can affect your borrowing limit, even if you don’t spend up to the limit. For example, if you have a card with a $5,000 limit which you hardly ever use and only keep in reserve for emergencies, a lender will still use that $5,000 figure when they do their calculations about how much they can lend you. A $5000 credit card can cut your borrowing power by $25,000.

Get a fully assessed pre-approval

Most first homebuyers get a bank to pre-approve an amount they will lend them so the homebuyer knows how much they can spend on a property when they start house hunting. But it’s important that you get a fully assessed pre-approval, where the lender has done a full assessment of your financial situation, including a close look at your income and liabilities. Without this you run the risk of putting down a deposit and then finding that for one reason or another that the lender won’t lend you as much money as you initially thought. The lender may also ask for updated documents after you find a property to verify that nothing has changed. Ahluwalia says mortgage brokers can help by advising which lender will be able to lend you the amount you need based on the types of liabilities you have, your income and where you’re looking to buy.

Length of time at your job

One of the key things lenders look at is how long you’ve been in your job. Generally, they’ll look back at three years’ of employment history and want to see that you’ve been in your current job for six months or more. “The bank will look at three years’ history of your work, employment and your residence. If they see that you’ve moved jobs for no apparent reason within the last three weeks and are on probation, it makes it difficult to get a loan,” says uno’s Jay Ahluwalia. This can be a particular problem for first home buyers purchasing off the plan, where they may not need to pay for the property until a year or two later and your circumstances change. You might be presented with a great career opportunity, but before you switch jobs, check with a mortgage broker about how this could affect these applications. If you follow these steps, you will have a much better chance of getting finance and maximising your borrowing capacity so you can buy the sort of home you want.

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At UNO, you can check your borrowing power, find a great deal and also apply for a loan all in one place. Book in a call with a dedicated uno consultant today!And once you have a loan, make sure you’re always on a great rate with loanScore. It monitors your home loan and alerts you when there are potential savings. Book a call in with UNO

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Sam Rezai
October 2, 2024
I have gone through 6 different mortgage brokers prior to meeting Andrew Wyers. He is the most patient mortgage broker I’ve encountered and also the most knowledgable about the bank’s lending process and products available. It took me 1 year to find a house I was happy with and Andrew was always there to assist with any issues or questions I had; he always return my phone call, even on the weekends or when his away on holidays. The loan process was smooth and I had no complications. The process with Andrew was again nice and easy, he took the time to find and put together the right package that was suited to my situation. I have recommended Andrew to my family & friends and everyone have been grateful and completely satisfied with his service.
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September 23, 2024
I had not dealt with Scott or UNO before finding them on the internet. Even as an Australian citizen living and working overseas, I knew obtaining a loan would be difficult. However, Scott went above and beyond what I expected from a mortgage broker. I genuinely don’t think you could find another company that works as hard as they did to get my home loan approved. I cannot recommend them highly enough. Everyone I dealt with at UNO were extremely professional and helpful. If you are looking for a broker, you would be mad not to give them a go. Thanks to Scott Wilkinson, Dalby Bajwa, Jena Lasquite and Andrew Pacini. Shaun.
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September 3, 2024
I had an outstanding experience with Tian Liu. He was incredibly professional and attentive, going above and beyond to meet my needs. His expertise and dedication made the entire process smooth and stress-free. Tian's deep knowledge of the market and commitment to finding the best solutions for his clients truly sets him apart. He was always available to answer my questions and provided invaluable guidance throughout. I highly recommend Tian Liu to anyone in need of a reliable and skilled broker!"
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Nathanael Chin
September 3, 2024
Tian Liu provided exceptional service throughout the entire process. His professionalism and keen attention to detail were evident from the start. Tian consistently kept us informed and offered insightful advice that made us feel confident in our decisions. He truly cares about his clients and works tirelessly to ensure the best possible outcome. We couldn't be happier with his assistance and highly recommend Tian to anyone looking for a trustworthy and knowledgeable broker.
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Patrick Winters
August 14, 2024
For the past three years, it has been an absolute pleasure to work with Mike Parsons. He has consistently helped us navigate commercial property loans with skill and efficiency. Mike’s timely and professional responses to our inquiries have been invaluable. We have built a strong, reliable relationship with him and eagerly anticipate continuing our collaboration in the future. We highly recommend his services.
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Lee Robibaro
August 6, 2024
I am so thankful and grateful to have Scott Wilkinson as my broker. He not only looked after me every step from start to finish he gave me confidence and I was able to trust him and his expertise. My children and I are now happy in our new home and very appreciative of Scott's help. I will definitely be only having Scott as my broker from here onward as there is no mucking around and straightforward answers. Thanks again
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Steve Mav
August 6, 2024
Scott and the whole team at uno have been amazing. Super responsive and helped us achieve a result that we couldn’t have possibly achieved on our own.
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Thien Pham
August 5, 2024
Scott, Dalby and Jena were awesome to work with for my recent Home Loan, they are responsive and knowledgeable - which helped ensure a smooth purchase from pre-approvals to settlement. This is the second property I've purchased with UNO as my mortgage broker and would definitely recommend their services. Thanks again to the UNO Team for the awesome support.
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Scott Hutchinson
August 5, 2024
I am writing this summary in support of recommending Mike Parsons as a Mortgage Broker. At the time of writing this, I have known Mike for 4 years and he has executed 4 mortgages deals for me (including 2 refinances) over that time. Mike has provided me incredible service as a mortgage broker as follows : - Works painstakingly on getting the scenarios together to provide you options that optimize your position. - Works inordinate hours on the detail necessary to support the scenarios. - Mike keeps you updated on the status and progress of the applications and also helps you work through answering questions and any complexities that may arise. -In my cases, given the complexities and timings of my situations , these application processes would take many weeks to finalize . Mike never gave anything other than utter commitment and focus to getting the job done. Mike acts as a true business partner throughout this whole broker /mortgage journey. I simply would only go to Mike for any future dealings on getting a loan from a bank (and as will my kids in the future !) . There is no way a bank (I have seen anyway) would provide this kind of time nor service to a customer. You can rest assured that once Mike has done the deal, you have ended up with the most optimized position taking into account all the variables/scenarios in play. Scott Hutchinson
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Jason Seam
August 5, 2024
I've worked with Scott Wilkinson for my last 2 properties and he's been excellent. He sourced multiple options and didn't push a specific bank, tailoring his recommendations to me based on my requirements. I was specifically requesting a "medico loan" and Scott could navigate that extra requirement with expertise. When I was initially working with Scott, I was also trialling 2 other brokers and neither of those 2 had the same breadth of lenders, or could provide the same deals. I've referred multiple buyers to Scott and his team; one of them said to me after working with him, "how'd you find this guy, he's so good compared to all the other broker's I've worked with!" I'm going into my next purchase with Scott as my broker partner again. I recommend him to everyone
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Tina Anderson
July 29, 2024
My experience with Mortgage Broker - Scott Wilkinson, and his team - exceeded my expectations! I couldn’t be happier after settlement - in this current financial climate. He listened to what my requirements were in a loan and then devised a suitable plan for me moving forward. Which was something I didn’t think was possible to achieve. I strongly believe that Scott’s qualifications and previous experience in the Finance Sector - sets him apart from other Mortgage Brokers as he has more insight into the industry and the needs of the customer. Scott was professional, provided solid options, was timely with communication and gave great advice. I will definitely be using Scott’s services in the future and I highly recommend him to anyone as a Mortgage Broker.
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Marlon Baena
July 22, 2024
Karis dedication to assisting with our home loan, even while I was on holidays, truly exemplifies a commitment to excellent service. It's the small things that often make a big difference, and it seems Karis attention to detail and clear communication were key to our smooth home purchase. I highly recommend using UNO and Karis for your home loan needs.
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