What Banks Look At Before Approving Your Home Loan

All right, Jack, it's good to have you back.

Thank you for joining us again.

Our previous three episodes with you have been really good in laying out the foundations of working with a broker and what's going on in the back end and what you need to know before seeing a broker, etc., etc.

Today, we're diving into how banks actually decide what they're going to lend you.

But before we get into that, I guess, Jack, what is the one thing you want listeners to take away from today?

Yeah, so thanks for having me back on again, Veronica and Megan.

Now, the main thing I want people to take away from today is that your borrowing capacity isn't just about your income and that every bank is actually assessing you differently as well.

So banks are looking at your entire picture when they're deciding how much they're willing to lend you.

So they're looking at your income, your deposits, your debts.

your spending, your credit history, and like you said, even the property you're buying itself.

So all of those things layered together is what helps a bank decide how much they're willing to lend you.

And understanding that early on as a first home buyer gives you real power because you can plan around it, you can clean up certain things if you need to, and you can make sure that you're with the right lender for your situation from the very start.

Got it.

This is going to be good.

I'm looking forward to this.

Now, this is a very small part.

You know, for regular listeners, you know that our course is made up of the PACE system, preparation, action, commitment and execution.

Within that PACE system, there are 10 steps.

And step number two is money, right? So we've been talking about money quite a bit because it's really important.

It can be the make or break.

And you can really move the dial if you do the right things in the right order.

So let's get stuck into this.