Applying for a bond? Get these documents in order
Published August 2024
Many people think that applying for a bond involves reams of paperwork. If you work with a bond originator, the good news is that you can submit your paperwork online at a time that suits you.
BetterBond will submit your application to multiple banks on your behalf, using the one set of information you have provided. This saves you time and is far more convenient than submitting a new pack of documents each time you apply for finance.
It’s advisable to first apply for pre-approval, online and at no cost, as you submit the same documents as you would for a bond application – just without the signed offer to purchase. As the consultant captures the information, they store it on your profile and can use it if you find your dream home immediately and sign an OTP, or just top up with the documents for the current month if the search takes a little longer.
The pre-approval application includes a credit check, so you will know whether you need to wait and improve your credit score before you apply for a bond. Having a good credit score will improve your chances of bond approval.
Although pre-approval does not mean that the bank has approved your bond application, it does give you a good indication of what the big banks will be willing to offer you based on your affordability. It also proves to the seller that you are a serious buyer with the financial means to buy the home. This will strengthen your hand when it comes to making an offer on your chosen home; giving you the competitive edge when the seller has to consider other offers.
Best practice
Before applying for a bond, make sure you have all your supporting documents ready, especially the four key documents needed for all applications: a signed offer to purchase, copy of ID, salary slips and bank statements. In addition, read these bond application dos and don’ts that will help your bond application get the green light for a comprehensive understanding of the application process.
Having some funds to put towards a deposit will also count in your favour when applying for a bond. Furthermore, our expert home loan consultants can assist you with what is required if you put in an offer that is accepted and need to take the next step in securing finance. Also bear in mind that you need to make sure your tax and financial statements are up to date and that you have a good credit rating.