Looking to buy your first home but don't know where to start? In this article we discuss 4 key tips to consider.
Navigating your way through the lending process can be a challenging and confusing process for customers especially first home buyers. Our role is to help guide you through this process, taking it step by step until we reach your goal.
Every application is different and the journey doesn’t look the same for every client. However, there are some key factors that lenders consider when reviewing an application.
So we’ve created a list of four tips to help you get started:
1. Make regular savings a habit:
As a minimum, Lenders want to see the difference between current "rent" and expected mortgage repayment (plus rates etc) saved on each pay day. This shows affordability to the lender.
2. Grow your deposit:
This may seem obvious however, the greater increase in your deposit the lower your borrowing will be. For instance, check out your local Bank rates with 20% deposit compared to under 20%, there are substantial savings with a higher deposit.
3. Clean up your credit history:
Defaults, late and irregular bill payments will severally effect the application.
It is crucial to be proactive in this area and ensure your credit history is clear. As adverse on your personal name or business will reduce funding and Lenders available to assist.
4. Practice good account conduct:
Over the last few years good account conduct has become one of the main factors when applying for a home loan. Good account conduct is important as it communicates to the Lender your financial responsibility. The Lender asks questions such as can you manage your day to day finances? Are there no arrears on your accounts? Are you saving regularly? Bills paid on time? Are they spending every available dollar right after pay-day?
Wish to implement these tips to get ahead? Please get in contact with us to start the discussion.