Buying a home is one of life’s biggest milestones – and for most of us, that journey starts with getting approved for a home loan. But if you’ve never applied before, the process can feel like a mystery until you’re deep in it. That’s why preparation is everything.
At Force Finance South West, our team have helped hundreds of locals across Bunbury and the South West navigate their first home loan with confidence. One thing we know for sure: the better prepared you are, the smoother the road ahead.
Here are five things you can do today – before you even find a property – to strengthen your application and improve your chances of securing the right loan.
1. Get to Know Your Credit Score
Your credit score is one of the first things a lender will look at, and it can have a big impact on your borrowing power. The good news? You can check it for free and take steps to improve it before you apply.
Look out for things like:
- Late payments on utility bills or credit cards
- Any defaults or judgments
- Your overall debt-to-income ratio
If your score’s not where you want it to be, don’t panic. Paying off outstanding debts, avoiding new credit applications, and staying on top of bills can all help rebuild your credit health over time.
2. Reduce Existing Debt Where You Can
Lenders want to see that you can manage repayments comfortably. If you’ve got a few credit cards or personal loans floating around, now’s a great time to reduce or consolidate them.
Think about:
- Paying off high-interest debts first
- Closing unused credit card accounts
- Avoiding Buy Now Pay Later services for a while
Reducing your debt doesn’t just boost your application – it can also give you more financial breathing room once you move into your new place.stances.
3. Start (or keep building) Your Deposit
Most lenders prefer to see at least 5–20% of the property price saved as a deposit. But more than that, they want to see that your deposit is genuine – that is, built steadily over time, not gifted or borrowed.
To help build a strong deposit:
- Set up a separate savings account for your home loan fund
- Automate regular transfers from your pay
- Avoid dipping into it unless absolutely necessary
Showing you can save consistently not only proves financial discipline, but also gives lenders confidence in your ability to make repayments.
4. Know Your Budget and Stick To It
Before you fall in love with a house, it’s essential to understand what you can realistically afford. This includes factoring in all the extras: stamp duty, conveyancing, inspections, and potential renovations.
Use a loan calculator or better yet, chat with a broker (like us!) to get a clearer picture of your borrowing capacity and what your monthly repayments could look like. A realistic budget now can save you stress – and disappointment – later..
5. Gather Your Documentation Early
Nothing slows down a loan application like missing paperwork. Having your documents ready to go shows lenders you’re organised and serious.
Start collecting:
- Proof of income (payslips, tax returns)
- ID documents
- Bank statements
- Details of any existing debts or liabilities
- Evidence of your deposit (savings history)
You don’t need everything on day one, but the more prepared you are, the faster things can move when you find the right property.
Want Help Making Sense of It All?
The home loan process can be a lot to wrap your head around – but you don’t have to do it alone. At Force Finance South West, we’re here to guide you through every step, from your first savings plan to settlement day.
Whether you’re just starting out or nearly ready to apply, we can give you tailored advice to improve your position and help you secure a loan that suits your lifestyle.
