5 quick tips for preparing to purchase
The coronavirus pandemic has put a big focus on financial security and investing in your future which has led to more people looking to get on the property ladder. ABS loan approval data shows that first home buyer activity is at a 10-year high, which has been driven by state grants and record low interest rates.
With more buyers in the market, what things can you do to stand out?
5 tips to prepare for purchasing property:
Save for a deposit.
Building a reasonable deposit is the best way to prove to any lender that you are a reliable applicant who spends less than they make. The bigger your deposit is, the less you must borrow, which not only gives you a better chance of being approved, but it makes your home loan repayments more manageable.
If you do not have a large deposit, there is a first home loan deposit scheme that could help you get yourself on the property ladder.
2 Get into good saving habits early.
Getting into good savings habits will not only result in you having a larger deposit, but you will get used to sticking to a certain budget and will show that you have the capacity to take on the additional expense of a regular home loan repayment. Your Living expenses are one of many factors that the lender will account for when reviewing your home loan application.
3 Check your credit history.
It is worth checking your credit history before applying for a home loan. Any loans that are unsuccessful can impact your chances of securing a loan in the future. Making sure your credit history is clean with no defaults is a very good way to prevent any roadblocks in your application.
4 Prepare yourself with a pre–approval
With your credit history in check and a deposit built up, it is often a good idea to seek pre-approval before you go shopping for a home. A loan pre-approval will give you a much better understanding of your borrowing capacity based on your income and liabilities, and your ability to service the loan. Pre-approvals do expire, but they are quite easily extended, so it gives you a bit of comfort when committing to purchasing a property.
5 Let the search begin!
Now that you have built your deposit, and put yourself in a position to buy, you can go and look for your dream home. Remember to call our team for a free, 30 minute strategy call.
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