Buying Tips
Buyer's Tips
1. Pay debts on time The Number One thing that can impact on your ability to buy a property is your credit history. If you've ever been chased by a collection agency to pay a bill or debt, it will be recorded on your credit history. A bad credit history signifies to a prospective lender that you may not be able to cope with making regular mortgage repayments. 2. Start saving Lenders also want to see a pattern of regular saving so set aside as much money as you can in a separate savings account in the months before you buy. 3. Use extra cash to pay off debts Banks generally look more favourably on loan applications showing people have no debt, despite the fact they may have less cash saved as a result. 4. Get your mortgage first If you are planning to buy a property in the next few months, don't lash out on other high-cost items before you do. Large purchases can hurt your credit history, especially if they're made in the few months before you plan to buy your property and you have to take out a loan. 5. Think about what you need Before you start house hunting, think carefully about your housing needs as opposed to your housing wants. You might want a five-bedroom house with a tennis court, but if your budget doesn't stretch that far you could be in trouble. Write a list of everything you need in your new homeand stick to it! 6. Start your repayments now Pretending you are already making mortgage repayments can be wise, particularly if you are going to be living on less after you buy a home. Put the 'repayments' in your savings account. 7. Don't forget pre-approval Before you start house hunting, it's a good idea to be pre-approved for your home loan. That way you'll know exactly what you can spend. 8. Don't forget ongoing expenses Home ownership isn't just about making mortgage repayments. Be sure to take into consideration ongoing costs such as council rates, electricity and gas charges and general household repairs. 9. Don't aim too high If you're used to paying $400 a month in rent and you're about to jump to a home loan where repayments are $1500 a month, think carefully whether you'll be comfortable with this level of debt. If it means you have to spend less on a house purchase, so be it. 10. Don't neglect your home loan Make sure you hunt around for the best deal (that suits your individual needs) before you lock in.