In these uncertain times, banks have started to take a more detailed approach to their lending criteria which can make it more difficult to successfully acquire a home loan. This is where we come in, at Buy Your First Home we aim to make the process easier for you by taking on the grunt work for you to give you the best possible chance to achieve your dream of owning your first home.
There are however a few things that you can do to assist in the process. We’ve outlined a few of these easy steps below.
Stick to a budget and avoid unnecessary purchases.
Give yourself a realistic weekly budget and do your best to stick to it, allow a splurge every now and then as it will make it easier for you to stick to the budget for longer. Remember Afterpay and Zippay are considered debt and instead of using these options save budgeted splurge money for these bigger purchases.
Manage your existing debt
If you have existing loans or credit cards make sure you make the payments on time and if possible make small extra payments. It is important to be diligent with payments as any overdrawn or late payments will not look favourably when the bank does your credit check. This also goes for your rent, in cases where first home buyers are looking for low deposit home loans a good rental history is crucial to success.
Do not take on any more debt.
Although there are a number of assistance programs for first home buyer at the moment if you truly want to achieve your very own home you must be committed to saving, which means not taking on anymore debt, credit card increases, store cards etc. When you really want those extra items remind yourself how great it will feel to be in your own home.
Keep your job.
To put it simply, keep your job. Consistent employment looks great on your home loan application. There will be times that inevitably job losses happen and it cant be helped, however the longer you are employed with the same employer the better. When choosing a time to apply for your loan we would recommend a minimum of 12 months.
Banks and lenders like to see a strong savings pattern the longer you save the better. It is always best to create a separate savings account that offers high interest rates so that it is not as easy for you to access when you are tempted to make those impulse purchases.
Talk to a mortgage broker
Sometimes the process of a loan application can become a long one, mortgage brokers now the system and the processes inside out and can often speed it up by getting all your documents and information together before going to the lenders. Mortgage brokers often have relationships with certain lenders and are therefore more knowledgeable of what they are focusing on at any one time.
At Buy Your First Home it is our goal to make the process of buying your first home a simple one. We know that sometimes its difficult to save a huge amount for a deposit, its for this reason we have developed our deposit assistance solution. Talk to us today about how we can help you.
0412 802 215