Finance do’s and don’ts to get you into your own home
Securing finance for your home can often seem to be the scariest part of the entire journey. Wondering will you get approved for a mortgage or will you have to spend a bit more time saving so you can start making your first home happen.
It can be quite daunting really. Letting your mortgage broker investigate every aspect of your finances. How many cheeky Afterpay spending sprees you’ve been on or how much you spent at last weeks Sunday sesh with your mates. But don’t stress our friends at Resolve Finance have handed us some do’s and don’ts that will give you the best chance of securing finance for your new home.
Let’s start with the things that you should do to help keep yourself in check.
Do keep adding to your savings where you can. When lenders see a steady increase to your savings, rather than lump sums it shows them that you have the capability to save but also dedicate funds towards something other than discretionary spending (you can repay your mortgage)!
DO inform your mortgage broker of any changes to your personal circumstances. Whether that is a change in job or the number of dependants in your family. It may seem small, but any changes to your life could impact your chances of securing finance.
DO stay on top of your financial obligations. Everything from credit cards and phone bills to Afterpay, rent and your car loan. Make sure you are meeting your deadlines on repayments to avoid receiving a default on your credit rating. An awesome tip if you’re not paying the bills as soon as they come in is to set a reminder in your calendar for the day before it’s due. That way you know you’ve gotta get it done.
We’ve covered the things that will help you secure you’re finance. Let’s look into the things that you should avoid when you’re looking into getting finance for your new home.
DON’T quit your current job. You do not want to lose your main source of income whilst you are trying to convince a lender that you are able to repay the mortgage. Not having a steady flow of income will raise red flags.
DON’T take on any new debt like car loans, personal loans or credit cards. Even though you may not be actively ‘in debt’, a lender assesses your suitability based on your potential risks of defaulting on your loan.
This one sounds like the easiest part of saving for your finance, but it’s where so many #homesweethomebuyers become unstuck. DO NOT spend your deposit.
Set up a dedicated savings account for your deposit that you do not touch until the deposit needs to come out. Having a dedicated savings account for your deposit also means that if you need to access any savings in an emergency, you’re not dipping into your funds for your first home.
All of these simple and easy to follow tips will help you be in the best position you can be to secure your home loan.
If you’re still unsure or your circumstances have changed during your new home journey, make sure to consult our friends at Resolve Finance first.
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