Requirements Needed for a Home Loan Application - A Simple Guide

Your Ultimate Guide to Home Loan Application Requirements

Updated: March 6, 2024 by Juan S

Why use Nook?

We are committed to providing accurate content that helps you make informed financial decisions. Our banking partners have not commissioned this content.

Have questions about housing loans?

Chat with a Nook Specialist

What are the requirements needed for a home loan application?

1️⃣ Identification Documents
First things first, you'll need to prove that you are who you say you are! Make sure to have valid IDs on hand, such as your passport, driver's license, or government-issued ID.

2️⃣ Proof of Income
Major banks want to make sure you can afford to repay your loan, so they'll ask for proof of your income. This can include your latest payslips, income tax returns, or certificate of employment. Don't worry if you're self-employed—we'll help you gather the necessary documents to showcase your income.

3️⃣ Credit History
Your credit history gives banks insight into your financial behavior. While a less-than-perfect credit score won't necessarily disqualify you, it's essential to be upfront about any outstanding debts or loans you may have.

4️⃣ Property Documents
If you've already found your dream home, you'll need to provide documents related to the property, such as the deed of sale, transfer certificate of title, and tax declarations. Don't worry if you haven't found a property yet—we can still help you get pre-approved for a loan!

5️⃣ Downpayment
While major banks offer competitive loan-to-value ratios, you'll still need to have some cash on hand for the down payment. Typically, banks require a down payment ranging from 10% to 20% of the property's purchase price.

6️⃣ Other Financial Obligations
Be prepared to disclose any other financial obligations you may have, such as existing loans, credit card debts, or monthly expenses. This helps banks assess your debt-to-income ratio and determine your loan eligibility.

Requirements Are Not Standard or Straightforward

Note that the requirements needed for a home loan application depends on many different factors.

These can include employment type, employment industry, loan type, property type, and other things like a banks unique requirements.

It is therefore not possible to provide one standard list of requirements needed for a home loan application that fits all borrowers and their unique circumstances.

That is why Nook is built on technology that does this work for you. We will guide you every step of the way and helping with the requirements to get your loan approved.

Advantages of Choosing a Major Bank with Nook:

✅ Convenience
Say goodbye to long queues and endless paperwork! With Nook's digital platform, you can apply for a home loan from the comfort of your couch. Our user-friendly interface makes the application process a breeze, so you can spend less time stressing and more time dreaming about your new home.

✅ Competitive Rates
Major banks offer competitive interest rates and flexible loan terms, ensuring you get the best deal possible. Through Nook, you gain access to exclusive offers and promotions from our partner banks, so you can save money on your monthly repayments.

✅ Expert Guidance
Applying for a home loan can be confusing, especially if it's your first time. That's where Nook comes in! Our team of experts is here to guide you through every step of the process, and helping you understand the requirements needed for a home loan application - from gathering your documents to securing your loan approval. We'll answer all your questions and provide personalized advice tailored to your needs.