Everyone dreams of being able to buy their very first home. Who doesn’t want to come home to a space that is a fruit of their hard work and dreams for many years? Even if you are in a situation where you think buying a house is nowhere near your horizon yet, it doesn’t mean that you can’t start preparing for it!
In fact, it is a good idea to plan and start preparing for when you can finally begin hunting for your new home. If you have never searched for a new property before, here are some things to help you get ready to get a mortgage in the near future:
Start Building Up a Deposit
For future lenders to see that it is safe to lend you money, you have to save enough money for a deposit. The bigger you have for a deposit, the better and easier it is for you to get approved for a loan. It also means that you’ll likely have reduced payments every month!
Have Money in Your Savings Account
Aside from building a deposit, you also need to have money in your bank account. This is why it’s a good idea to start a savings plan. Set a budget for your monthly expenses and stick to it. Make it a rule to save a specific amount of money every month no matter what. Lenders also check if you have a history of having savings in the bank, and they factor that in when making a decision about loan approvals.
Review Your Credit History
It is important that you have a good track record when it comes to credit. If you have previous records of missed bill payments, those are going to take away points when you’re trying to get a loan. For this reason, as early as now, check your financial history so that you can see your record and if there are indeed some black marks, do what you can to improve your credit score.
Work on Getting Pre-Approved
When you are finally ready with the funds for a deposit, have some money saved in the bank, and your credit score looks good, it’s time to consider getting pre-approved by a lender. Getting pre-approved means that you’ll know how much you can afford, and you can concentrate on looking for houses that are within your budget. This will save you a lot of time and effort. Additionally, when you do find a home that you like, the seller will take you more seriously if you are already pre-approved by a lender.
Once you get pre-approved, you can start researching the neighbourhoods where you might want to live. You can also contact a real estate agent and let them know where you’re at in your home buying journey, and they can help you move forward.
You see, wasting time and energy focusing on why you can’t afford a house right now won’t get you anywhere. What will bring you closer to your dream of being a homeowner is taking the necessary steps to get there, so start building a home loan deposit, save some money in the bank, get your credit in check! When those are done, be sure to get pre-approved! Instead of focusing on what you can’t do right now, focus on what you can. With the right preparation, you might even be able to fulfil your dream sooner than you expected!
When you’re ready to take these steps, FinanceCorp is here to guide you through your journey. You can speak to our finance managers who will be happy to discuss with you our loan options and what you can do to get approved in the future. Contact us today to know more about home loans in Perth, WA!