How to get your home loan approved with Chris Booth from Lydian Finance

Getting your home loan approved doesn’t have to be complicated and frustrating, with the right preparation and team on your side.

Chris Booth from Lydian Finance joins us again to bring some helpful tips to get your home loan approved faster and with less stress.

Ayre Real Estate: What advice would you give potential borrowers looking to get finance approved?

Chris Booth: I would recommend seeking out a mortgage broker, ask for a recommendation from your real estate agent, accountant, financial adviser, or friends!

Have a review meeting with your mortgage broker to discuss where you are financially and get professional advice before going to a lender to apply for finance.

Many people try to do their applications themselves and apply to multiple lenders. This negatively impacts the client’s credit score. Declines, although not noted on the credit report, are noted as an application on file.

By going through the advice of a mortgage broker you are increasing the probability of your finance being approved.

Your mortgage broker will be doing a health check in the pre-application phase and then reviewing the best lenders and interest rates. A mortgage broker will look at credit policies that best fit you personally and ultimately find you the most appropriate lender.

Now you have another professional adviser on your team! 

Ayre Real Estate: Are there specific actions or items that borrowers can do to speed up the borrowing process? 

Chris Booth: Yes, keep good personal records. A borrower must provide a lot of information for a loan, so having access to current tax returns, payslips, and bonus or commission information can be important.

Secondly, make sure that you are watching your personal expenses, cut out the Uber Eats and shopping where you can, as your living expenses are being assessed when borrowing.

Lastly, make sure you are repaying your current credit on time as late payments or missed payments impact your credit score and are noted on your credit report.

Ayre Real Estate: What should borrowers who are looking to buy in 2023 prepare now?

Chris Booth: Have a plan! Have the review with a mortgage broker, set a budget, get a pre-approval in principle in place, and be clear on the numbers to buy including stamp duty, legal costs, fees, etc.

If you are a first-time buyer, review the benefits and grants available in your state.

Get your deal team in place – this includes a mortgage broker to ensure you have finance approved with a good lender, a real estate agent to help find the best property and a solicitor or conveyancer to review the contract for sale.

Then be confident in your plan and execute it!

Ayre Real Estate: What’s likely to most influence a buyer’s borrowing power in the current market?

Chris Booth: The banks’ assessment rate at 8.50% is a big hurdle to start. Banks use a higher rate than the actual current interest rate to protect the borrower’s ability to repay their loan in case of an increase.

Living expenses are another big factor, so watch your discretionary spending.

Consolidate small credit like credit cards and car loans - if you can close these or roll them into a home loan, this makes a big difference.

Lastly, the term of the loan. Ensure you apply for a 30-year term (there is a 40-year loan), this allows you to borrow a bit more but gives you the flexibility of repaying extra amounts above and beyond your standard repayments if you want to.

Ayre Real Estate: How long should buyers expect home loan approval to take currently?

Chris Booth: If the financial position of the borrower and paperwork is straightforward, one day! If it is a bit more complicated, the mortgage broker will advise you on this, then potentially a bit more time is required to approve. Self-employed applicants can need a bit more time to assess.

Ayre Real Estate: Is there anything else you would like to add?

Chris Booth: If people are looking to build wealth via property, it is very important to have the best professionals in your team to help you on your journey. A good real estate agent, mortgage broker, solicitor or conveyancer, accountant, and financial planner. Leverage the experience of your professional team and have a plan. Review the plan annually.

About Chris Booth:

Chris has over 30 years of Banking experience. Starting his career in the Isle of Man working in Treasury and Financial Market Services for Royal Bank Of Scotland, Chris left the island when he married Kellie and moved to Sydney, Australia.

He has worked for Bank Of China in Treasury, Commonwealth Bank in Premium Banking and Corporate Banking, St George Bank Corporate specialising in finance for Financial Services Business. Specialising in Mortgage Broking when he joined The Announcer Group in 2010, Chris built a successful Mortgage Broking Business and Team within an integrated Wealth Management Business.

More recently, he was the Manager of Lending at Infocus Advisory where he managed a team of Mortgage Brokers who worked in Partnership Referrals with the Groups 200+ Adviser network.

Chris is a seasoned lender with experience in residential and commercial complex transactions. He has mentored and managed many Mortgage Brokers into the industry. He has a passion for team building and has professionally managed both operations and sales team within scale business’. He brings these years of experience and knowledge to the Lydian Team.

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