🏡 Preparing for Mortgage Application Success💪 A 12-week training program for your finances, inspired by ultra-running!
Preparing for Mortgage Application Success – Your 12-Week Ultra Training Program
By Shona Stephenson, X-Elite Ultra Endurance Runner & Mortgage Broker at Best Foot Forward Mortgage Solutions
Applying for a mortgage is like preparing for an ultramarathon. You need strategy, endurance, and discipline to get to the finish line successfully. Just like you wouldn’t show up unprepared for a 100km race, you shouldn’t walk into a bank without first training your financial fitness. This 12-week mortgage preparation program will help you get your bank records in peak condition so you can confidently approach lenders and secure the best possible loan.
Week 1-2: Set Your Goal and Assess Your Starting Point
Every ultra-run starts with a clear goal. Are you aiming to buy your first home, refinance, or expand your investment portfolio? Take a look at your financial landscape—your income, expenses, savings, and debts. Much like assessing your fitness before a race, understanding where you stand financially is crucial before you begin training.
Most importantly, start your 3-month savings program today. Most lenders will want to see a 3-month savings history—even if it's just $100 per week, whatever you can commit to, start it today. This demonstrates financial discipline and reassures lenders that you can manage regular repayments.
Week 3-4: Clean Up Your Spending (Build Your Base Fitness)
In ultra-running, base training lays the foundation for endurance. Similarly, trimming unnecessary expenses is key to financial fitness. Lenders scrutinise bank statements to see how you manage money, so cut out excess spending. Reduce takeaway meals, impulse buys, and subscriptions. These small changes will help you run a more efficient financial race.
Week 5-6: Reduce Debt Load (Shedding Extra Weight)
Carrying extra weight slows you down in a race, and carrying too much debt weakens your borrowing power. Focus on paying off high-interest debts like credit cards and personal loans. Lowering your debt-to-income ratio will make you more appealing to lenders, just like shedding excess kilos makes you a faster runner.
Cancel any buy now, pay later accounts and reduce your credit card limits. Even if you’ve paid off most of your credit card, lenders will include the limit in your expense calculations, which could be the difference between servicing a home loan or not. Trimming these financial burdens will put you in the best possible position for mortgage approval.
Week 7-8: Strengthen Your Credit Score (Speed Training)
A good credit score is like strong leg muscles—essential for peak performance. Pay your bills on time, avoid multiple credit applications, and check your credit report for errors. Just as speed sessions improve race times, these financial tweaks can significantly boost your mortgage approval chances.
Week 9-10: Save for a Bigger Deposit & Maintain a 3-Month Savings History (Endurance Training)
Long training runs build stamina, and a bigger deposit builds financial resilience. Saving more means lower loan-to-value ratios (LVR), better interest rates, and potentially avoiding Lenders Mortgage Insurance (LMI). Set up automatic savings transfers and commit to the financial equivalent of a weekly long run.
Lenders also want to see a solid three-month savings history, proving that you have financial discipline and the ability to maintain consistent savings. Ensure that your savings account reflects a steady growth pattern with no large, unexplained deposits or withdrawals that could raise red flags.
Week 11: Review Your Loan Options (Race Strategy Planning)
No ultra-runner enters a race without studying the course. Similarly, researching loan options, comparing lenders, and understanding repayment structures is crucial. This is where working with a mortgage broker—your financial coach—can help you develop the best strategy.
Week 12: Final Preparation (Tapering & Resting Before Race Day)
The final weeks before a race are about fine-tuning and avoiding unnecessary risks. The same applies to your mortgage application—keep your spending stable, don’t take on new debt, and ensure your financial records are spotless. It’s all about presenting yourself in the best possible shape to lenders.
Race Day: Submitting Your Mortgage Application!
For some people, the first 12 weeks is all about preparing your financial records. In comparison, the second 12 weeks is the race itself—constantly monitoring your spending, keeping your records clean, and continuing to save. After this disciplined period, you will be ready to confidently submit your loan application.
This process is completely normal. It may take 3-6 months to prepare for a successful mortgage application fully. Check with your broker today—they can set you up with a plan for success!
With all the hard work done, it’s time to step up to the start line—your mortgage application. By following this 12-week financial training plan, you’ve given yourself the best shot at success. Now, let your mortgage broker take the baton and guide you through to settlement day, just as a coach would support you through the final push to the finish line.
At Best Foot Forward Mortgage Solutions, we specialise in helping professional Australians confidently cross the home loan finish line. Ready to put your best foot forward? Get in touch today for expert guidance on your mortgage journey!
Your financial ultra-marathon starts today. Let’s train for success together and book a complimentary discovery call using the calendar below, or phone Shona on 0417 693 281.
The information contained is general information only and does not consider your personal objectives, financial situation and needs. We strongly recommend that you do not act on any information provided in this website without individual advice from your trusted advisor. You should also obtain a copy of and consider the Product Disclosure Statement for all financial products before making any decision.
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