what do they look for when borrowing for a home loan?

[traseal]

What do they look for when lending you money? I mean obviously how much you earn etc. But what things maximise your chances of getting approved?

[Luna Lovegood]

Evidence of progressive savings, a deposit, and a good credit rating.

As long as they see you have the capacity to make repayments without actually leaving yourself broke/ unable to pay other living expences.

[BigRedV]

I think now the big thing is the ability to show genuine savings.

[Luna Lovegood]

Best to show saving over 2-6months as well, as it's a good way of showing your able to meet repayments....KWIM?

[borntobemummy]

how much savings and how much do you need for a deposit?

[MothersMilk]

I would aim for 20% of the loan as a deposit - although i don't think that much is necessary to get a loan it will make it easier. I know that is a lot and most don't have that much but i think if you can get there you should (unless it will take you 10 years to save then it's not worth it).
I would also have at least 6 months worth proof of continuous saving - so for 6 months put a set amount away.
Not having any debt will be a huge positive.
Really you should speak to a professional as every situation is different. They will be able to advise you of what you need to do to get a loan :yes:

[Luna Lovegood]

Depending on the lender, but most are asking for around 3-5% and that deposit be of progressive savings.

If your being given a lump sum of money that is equilolent to a deposit, you still would need 3-5% savings.

[traseal]

if you dont have the 20% deposit do you know what the extra charges are and how much they are?

[jag5000]

I found out yesterday on a loan of 400k you need 29k deposit and another 27k for fees and charges.. that's in VIC and not taking into account any grants

[MothersMilk]

The fees and charges vary - so best to visit a bank or home loan provider to get an accurate estimate.
I paid around 15 thousand in fees.
Fees add so keep that in mind but don't forget things like the first home buyers grant etc will help.

[Jakois]

We have just taken out a loan to build a new home.

We required 5% deposit through genuine savings.

The FHB grant and boost will cover our fees and charges.

[JackOfAllTradesMummy]

They look at income, your family circumstances (so any independants like kids), previous credit history, savings and deposit they also look at existing debt like car loans and credit cards, get rid of credit cards because they are evil, even if you have nothing owing on them the bank will count the limit on the card as a debt because you have the capacity to take the money out..