With lenders applying stricter criteria, we thought you might find these tips from Mortgage Choice helpful in getting your loan approved.

1.Check your credit history and resolve any problems
2.Check recent bank statements and make sure they are free from unusual transfers or withdrawals of large sums. If there are unusual transactions, you will need to explain them to the bank
3.Create a good savings plan and put aside the difference between your rent and your prospective new mortgage repayment
4.Banks look for genuine savings capacity to prove you can repay your loan. Genuine savings are funds saved regularly over a period of three to six months
5.Clear excess debt such as credit cards, car loans, personal loans and HECS/HELP fees
6.Lenders like stable employment, so if you have changed jobs recently or frequently over several years, make sure you explain why in your loan application

Source: www.mortgagechoice.com.au

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