When a bank approves a loan, it must be reviewed in two ways:

( Servicing ) + ( Security ) = Formal Approval

If you click on the corresponding links, they are the two parts involved in “My Home Loan  Our Services “, namely:

1. Review of borrowing ability , that is, the borrower’s income acceptance (including work income, business income, or rental income from investment housing, or dividends, etc.)
2. In the review of collateral , the bank judges the risk of collateral borrowing by evaluating the value of the property. Some properties can borrow 90%, normal borrowing 80%, and many properties can only borrow 70% due to area, area restrictions or the property itself. Or lower, even do not accept the property as collateral.

These two aspects are complementary. If your income is good, even if you get a loan pre-approval, you will not be able to obtain the final approval of the loan because of collateral problems (undervaluation, insufficient funds to complete, or unacceptable collateral); It is because the assets and funds are abundant, and the house bank accepts it. However, because of its ability to borrow, it can only obtain a lower-than-expected loan ratio and cannot successfully settle. Therefore, we suggest doing some simple communication with our loan manager when looking for a house, firstly understand your own loan ability , secondly, make sure that the property is a collateral acceptable to the bank , and then continue to sign the contract and pay the deposit, to ensure your own interests Settle.

Isn’t that to ensure that the loan will be approved after the above two points? The answer is not necessarily the other one, which is particularly important, but is easily overlooked by everyone is their ” Credit Report ” Although mortgages are secured loans, they are also based on credit. Therefore, the first step when a bank or institution approves a loan application is to confirm whether the applicant has a healthy credit history. For more information on please click read to understand their credit history in Australia now. Loan application is a complicated credit approval, and there are many aspects that must be checked in detail. Our job is to act as your professional consultant, starting from your actual situation, by understanding your information and materials, combined with the interpretation of each bank’s credit policy, and using a reasonable structure to help you obtain loan approval. Perhaps you think that the borrowing capacity is not enough, but our loan manager may help you realize your dream of buying a house by readjusting the borrowing plan and bank choices.

My Home Loan Some Mortgage Knowledge You Need to Know