How to qualify for a home loan
When you apply to a lender for a home loan there are a number of important points the bank will look at. Firstly your income, we will work out how much money you are earning, how much money you have to pay out to other loans and then determine how much money you can borrow. Then we will look at you yourself and see that you have a stable job or form of income. The bank will also look at your credit history to see that you have been paying all your bills on time. If you pass through that process we then look at the property you are going to buy and proceed with a valuation of it. A valuation means that a specially trained person will go out to the home and carry out an inspection. He will then determine whether you are paying the right amount for the new home.
If all that is fine then you will be given unconditional approval and the home will be yours.
I hope this has helped you understand the loan process and how we as mortgage brokers are there to help you.
Don’t know where to start when it comes to choosing the right home loan?
With features and fees varying from one loan to the next it might seem like a bewildering array of options, but the good news is that you don’t have to go it alone. As your mortgage broker, my role is to work with
you to assess which of these loans will prove the best match to your income, goals, budget and lifestyle.
Fixed Rate (Principal and Interest)
Fixed rate loans are priced according to a pre-determined interest rate and therefore have fixed loan repayments. The time period of these loans can vary, but you can usually ‘lock in’ your repayments for between one and five years. When the fixed term expires, you can decide whether to fix the loan again for another period of time at the current market rates or convert the loan to a variable interest rate.
Variable (Principal and Interest)
The rate charged on variable loans moves up or down in accordance with interest rates. A basic variable has fewer features and flexibility than a standard variable, which may typically offer low introductory rates and the ability to make additional payments (redraw).
Split Rate (Principal and Interest)
You can divide split rate loans between fixed and variable interest rates, selecting yourself how much to allocate to each.
Interest-Only
You repay interest only on the loan principal for a period of between one and five years. At the end of this period, you revert to making both principal and interest repayments.
Basic or Simple Loan
These types of loans usually less feature packed than the standard variable rate loan yet have a lower interest rate and are quiet often the most common loan type around. You will usually have to pay an application fee for these types of loans as there is no much profit in them however if you can get one like ours with no ongoing fees and no fees or limitations to use the redraw facility then you will have a good loan. The secret to these loans if finding one without ongoing fees.
Standard Variable Rate Loan
This is a loan most commonly supplied by a major bank and has a much higher rate than Basic loans and often even has an application fee and ongoing fees. This is not a loan we recommend.
Professional Pack
The Pro Pack range of loans we introduced by many lenders to provide a package solution for people who need a little more from their home loan. A Pro Pack loan will usually have an annual fee but by paying this fee all other fees are waived and you will get much more accessibility features to your loan. The other benefit of a Pro Pack is that he annual fee will usually give you a very big discount on your rate, sometimes as much as 0.7% off the standard variable rate, however you normally need to borrow in excess of $500,000 to obtain such a high discount. At Miracle we give you the full discount no matter how much you borrow.
Line of Credit
A line of credit allows you to access additional funds by drawing on the equity value of your home. After fixing a limit on how much you can borrow, you direct income from all sources into your loan account and then draw down funds as required.
