Home loans are a big commitment with a big impact on a borrower’s future finances. That’s why most borrowers want to turn as many odds in their favor as they can. Sometimes timing plays a key role in finding a good loan deal and a great lender.
At Home Loan Comparison, we always encourage clients to look at their options carefully and be patient when it comes to home loans. This isn’t a decision you should make in haste because of its impact on your financial life. You will have to live with the loan for 15 to 30 years, after all.
When Should You Apply?
There’s no right or wrong time to apply for a home loan, but there are ways to improve your chances of success by timing the application right. Here are some things to keep in mind:
The Best Time of the Month
The best time to apply for a home loan is during the first few business days of the month. Most lenders in Australia are focused on acquiring new clients during this time and will be eager to return your calls. Your application has a higher chance of being processed quickly at this time.
Industry insiders consider the last week of the month to be the worst time for an application. Most lenders will be busy trying to meet their monthly targets and closing deals created during the month. Borrowers might face delays and slower processing time if they apply at the end of the month.
Arrange for The Mortgage Early
The mortgage approval process can that up to seven days if the loan is complex. That’s why it is a good idea to apply as quickly as you can. Don’t wait until you have found your dream house before applying for a loan. It is a good idea to get pre-approved for a loan and have it on standby
This ensures you don’t miss out on a good property deal because your loan wasn’t in order. A lender will provide something called at AIP or an approval in principle. This indicates how much money they’re willing to lend you for the purchase. You can set your home search parameters accordingly.
Make sure your credit score is in good shape and you’re in a stable financial situation before you apply for a loan. If you want to know more, don’t hesitate to contact us at Home Loan Comparison on 0419 856 669.
Posted in: Finance