This article was originally published in 2016 and has been updated.

Your income is a key piece of information that home loan lenders like to see. It provides valuable information on your borrowing power and your ability to comfortably manage home loan repayments.

So if you’re in the market for a new home it pays to be prepared.

Gather several recent pay slips or your contract of employment stating your regular wage or salary. If you’re self employed you’ll need to show at least two years‘ worth of tax returns. That way you won’t have to make a last minute dash for documents when the time comes to apply for a loan.

Review your other debts and aim to reduce them

Lenders don’t just look at your income. They will also want to understand your complete personal balance sheet, and any other debts you are paying off will be scrutinised.

This is because your income will need to be spread across your home loan repayments plus other outstanding debts like a personal loan, car loan and credit card.

Lenders are required by law to ensure you’re not taking on more debt than you can manage. So it can pay to knuckle down and reduce other debts before applying for a home loan. This not only makes it easier to focus on growing a deposit, your personal finances will also be more likely to come up with a clean bill of health when a lender is reviewing your home loan application.

Scale back credit card limits

One thing to be aware of is credit card debt. Lenders don’t just look at how much you currently owe on a card. They also want to know the total credit limit, which represents the amount you could potentially rack up in future card debt.

This being the case, if you have a generous card limit it can be worth contacting the card issuer to request a reduction in your credit limit. It’s a simple step – but one that could help your loan application over the line.

Being organised can help

Giving your finances a quick tidy up can put you in a much better position when it comes to securing the home loan of your choice. And taking steps before you’ve found your ideal property can speed up lender approval, reducing the odds of missing out on your dream home to a more organised buyer.