Investing in a home is one of the scariest / exciting things that you can imagine. That said, it’s incredibly expensive and often something that many people are unable to do without some financial assistance in the early stages.
So, if you’re looking into buying your first home and would like to get a home loan approved in order to help soften the initial blow, then here’s what you need to do:
1 – Know your credit score
Knowing and understanding the state of your credit score is very important, especially when it comes to buying a home. That, and it’s a very simple and straightforward procedure which doesn’t require all that much effort.
If you’d like some tips on how to improve your credit score, simply follow the link.
2 – Save as much money as you can
If you’re getting a home loan, you want it to be as little as possible in order to keep the monthly repayments down. One of the best ways of doing this is by saving as much money as you can to begin with. Yes, this is easier said than done, however, if you can afford to wait another year or so before rushing into getting a loan then it might be worth the wait.
For those of you who want to get onto the property ladder as soon as possible, then you might want to see if you can borrow interest-free cash off of family. This isn’t always possible, but again, it might help to keep your premiums down.
3 – Be consistent with your work
Those who have an inconsistent work history are less likely to be approved for a home loan. In order to improve your chances of being approved, you’ll need to demonstrate that you can hold down a job for a long period of time. This is largely due to the fact that those who are not consistent with work, tend to be inconsistent with repayments.
4 – Pay off as much debt as possible beforehand
Don’t worry, you don’t have to be entirely debt free to get a home loan approved, however it certainly helps. Before making your application, we would advise trying to pay off as much of your debt as possible. This way, you’ll be demonstrating to your mortgage broker (let’s say, Multi-Choice for example) that you are consistent and reliable with making payments and paying off debts.
5 – Be realistic about what you can afford
Being realistic about what you can afford is another great way of ensuring that your loan applications are approved when the time comes. Here are multiple loan calculators that you can use, for research purposes. This will give you a clear indication as to how much you’d be expected to repay on a monthly basis so that you can gauge which is the most realistic option for you to apply for.