Buying a Property? Here's a List of Documents Needed For Your Mortgage Application

It's a common question - 'what do we need to complete our mortgage application?'. Usually, time is critical, as the finance clause on the purchase contract is only two weeks.

Of course every borrower's circumstances are different, and different mortgage lenders require different information (I just realised that's a lot of 'different'), but here's a list that will give you a good start:

• Copy of the Property Purchase Contract (the signed copy)
• Copy of your identification (Driver's Licence, Passport, Medicare Card should do - and some lenders require the copies to be certified, so you may need to arrange a JP or a Comm. Dec.)
• Copy of your recent payslip (best to get the last three, just in case)
• Copy of your tax return (most lenders will require the last two years, especially if you receive regular overtime, or commission/bonus payments)
• Copy of your bank account statements (get the last three months of all bank accounts - especially if you need mortgage insurance)
• Copy of your superannuation statements (the most recent is always a good idea)
• Copy of your rental ledger (you can have your rental agent provide you with this report)

Mortgage lenders are taking longer and longer to assess mortgage loan applications, and if you're buying a property, you'll most likely only have two weeks to get your finance approved, so doing some prep-work before you even start will speed-up the process and help you meet your finance approval date on time.

Better still: arrange for your mortgage adviser to obtain a mortgage loan pre-approval, so you will know: a) how much you can afford; and b) if the lender will give you the money you need to buy your property.

Having a mortgage loan pre-approval may also give you some bargaining power when purchasing the property, as the seller knows you can get finance and therefore they may be willing to drop the price in exchange for a shorter finance approval period. But be careful, as a mortgage loan pre-approval will usually require a property valuation, acceptable to the lender, before the lender provides final approval. So you will likely still need to have a finance approval period in your purchase contract (although, one week should be enough time), to cover the time it takes to obtain the valuation.

And don't forget, if you need any help with your mortgage loan, Contact Us for a free financial assessment - because 'everyone needs a plan!'.