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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John Cahill
March 7, 2024
Scott Wilkinson was my broker last year when I sought finance for a new property investment and refinance for my property port folio. He was an absolute delight to work with. He was always professional, on time and always available to talk at a moment's notice to discuss my credit options and give well considered advice; usually this was very much after-hours due to my work commitments during the day. He was always happy to talk. I had not used a mortgage broker in a long time opting to do the re-financing myself. This was primarily due to disappointing experiences I'd had with mortgage brokers in the past. However with the increasing complex nature of dealing with credit providers, I could see that I needed a good advocate to act on my behalf for this particular refinance. In all honesty I did not hold much hope that in the current credit environment I would be able to secure the finance I required for the new property investment I was wishing to secure. Scott found a way however and was able to secure the finance along with the refinance of my portfolio. I have since referred friends to Scott and I know they have been very happy with his work. He is ideal for property investors who have busy day-jobs and need someone who understands property investment strategy and is able to tailor credit advice and options to their needs. Scott provides this advice and information in a way that is clear and concise. He kept me up to date continually during the application process. He made what could have been a very stressful and frustrating process easy and straightforward. I could not recommend Scott and the team at UNO Home Loans more highly. They are all a delight.
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Sally Mackenzie
February 19, 2024
We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
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Rod
February 13, 2024
Scott and his team were just A-mazing. We felt supported through the whole process with the greatest quality and care. Every question answered right in time, or even before we asked. The process was smooth and we got the best outcomes we could have wished for.
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Angela Biddle
February 6, 2024
Our mortgage recently came up for renewal, and with interest rates skyrocketing we were looking for ways to minimise the impact. Michael and his team were proactive and attentive. Michael spent time with us to understand our circumstances. He found mortgage options that worked with our current financial situation and longer investment plans. He presented clear options, providing guidance where needed. He and his team were helpful and responsive - streamlining the process and keeping us updated through the negotiations. In the end, Uno did the heavy lifting and secured a significantly better rate than our current bank offered, all with friendly, personal service. We would highly recommend UNO Home Loans.
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Fotis Bikas
January 15, 2024
I cannot help but congratulate Scott Wilkinson of UNO Home Loans for being an absolute credit to both his company and the entire loans industry. Scott is a truly rare gem of a broker in that he will not only go the extra mile to achieve for each customer the very best deal, but his knowledge of all and sundry within the industry is unsurpassed (you will see what I mean if you speak to him). Additionally, Scott has a clear passion for imparting his wealth of information with each customer, whereas the conversation with most other brokers would simply be over if they could not get you the best deal. For me, Scott Wilkinson of UNO Home Loans stands head and shoulders above the competition and I feel privileged to benefit both from his expertise and professionalism whenever it is time for a refinance or new loan.
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Tomoharu Matsui
January 11, 2024
Michael Parsons helped me a lot when it's difficult to establish my capabilities in loan.
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Gillian Kearon
January 9, 2024
I highly recommend Mike Parsons as a mortgage broker. I couldn't fault the service provided by UNO. Thanks Mike!
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Taner T
December 20, 2023
Thank you Eren Tan for the amazing service and support. Our Loan was a little tricky and complex for other lenders but Eren managed to get it over the line in record time. His professionalism and dedication to our needs was exceptional. If you need a Loan no matter how complex your situation, make sure you contact Eren at UNO Home Loans.
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Karaipu Brown
December 20, 2023
Buying & selling a house at the same time is very stressful but Scott Wilkinson from UNO home loans made sure we knew what was happening & took most of the stress away. He always kept us up to date and if we had a concern or wanted clarification on something we were able to call him, if he didn’t know the answer straight away he will find out and contact us back.. now we are enjoying our new house and turning it into a home :)
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Chris Anderson
December 18, 2023
Just completed my first loan with UNO which was so much easier than with other other brokers I have used in the past. Our broker MIKE PARSONS always had time for me and broke things down for me in the simplest of terms and was very patient with my silly questions and my constant changing of plans. I wish I had used them in the past as I wouldn't be in the situation I'm in now. Can't recommend them highly enough. Thanks UNO and Thanks MIKE 😊
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Stephen Broomfield
December 11, 2023
To be able to recommend Scott Wilkinson for your mortgage broker was a privilege. We had deals fall through but Scott supported, guided and stuck with us, proper partnership. The whole team at UNO helped us and supported us right through to after settlement. Made sure everything was correct and how we are progressing. Communication was amazing and straightforward and easy to understand. Transparent. We can not Recommend Scott and the team as Uno high enough. Use UNO with confidence.
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Tarek Hussain
December 6, 2023
Can't thank Amy enough for her hard work, dedication and determination on getting multiple loans completed for me. I wouldn't hesitate in recommending Amy and the Uno team to any of my associates. Will definitely be back in the near future!
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