- Posted 05 Dec
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When it comes to time to become a first time home buyer, there’s a lot of things you ‘have’ to consider. Have you thought about where you’d like to live? How much space you need and can afford? Have you spoken with a Mortgage broker? You’ll want to do that at the beginning of the process, as their years of experience and expertise with lending policies will be your best guide. They’ll be able to inform you about the best interest rates you can get and all the loan options available to you.
So, do you think you’re ready? You’re mortgage broker is there to help, but you’ll need some good habits of your own too. We’ve broken down the good and the bad habits when it comes to first time home buying so that you can avoid the bad ones.
- Be knowledgeable about how much you can actually borrow. You’re going to be applying for a home loan; there are loans that you will and won’t be able to qualify for. It’s a good habit to know about your borrowing power
- Credit history. Do you have good history of credit? If so, you definitely have formed a good habit. Without good credit history, you’re going to have a very difficult time securing a home loan. If you have a small amount of debt and have been making your payments on time every month, you shouldn’t have a problem securing finance
- You have a home deposit ready. Generally, you’re gong to need around 5% to purchase property. If you do have a deposit, than you have what we consider a “good” habit. You’ve saved well and been conservative with your spending.
- You’ve held a steady job. Your lender will want to see that you’ve been working in the same place for the last 6 months. This is a great habit as we see it! Now if you’ve just started your job, don’t fret, you can still qualify for a loan, just ask your loan officer what those options might be
- Youdon’t have any real savings and you don’t have a guarantor. If this is the case, you may have some problems securing your loan. Talk to a mortgage broker about your options BEFORE you take any further steps
- You have bad credit history. This is certainly not the best position to be in, but your loan officer still might have some options for you
- You’re buying in a remote area or one with a fluctuating property market. Some lenders might see this as high risk, clarify you have pre-approval before making an offer
- You’re property is rather unusual. Is the property you’re buying a bit “out of the box”? You’ll need to check if the lender will accept your property
- You don’t have pre-approval, or you’ve signed the contract of sale before getting pre-approved.
So are you one of the habitually good or bad? Either way, working with a Mortgage broker is your best resource to find out about the home loan options that will be best for you.
Contact our team today to discuss your mortgage options. Whether you’ve got a deposit or not, we will work with you to find the right lender to suit your needs.