Okay, so you have written down your budget. Your savings plan is underway and you can see those dollars increasing every week in your account. Fantastic, you are on your way to achieving your goal.
In preparation for your first property purchase there are a few more things to prepare and keep in mind other than your deposit.
Remember to keep your savings in a separate account, not just the account your pay goes into. This gives the proposed lender a clear view of your savings patterns.
It is always good to save more than your targeted amount as when you do move into your house there are always additional costs and expenses. Stamp Duty on the purchase of a house can be quite substantial as well as Conveyancing and Borrowing costs. You may also want to do additional landscaping or buy additional furniture. Your Broker can give you a full run-down of all costs involved in the purchase process.
If you do want that new lounge, TV or Fridge, it is always recommended you steer away from interest free deals or credit cards at this early stage.
Take extra care with your current Telephone and mobile accounts, and, if you are living with mates, electricity accounts. If you have a bad history in either one of these, it can stop you from getting a loan. Be responsible for your spending and bills especially mobile phone accounts as mismanagement of this could result in a default on your credit rating which makes it very tough to get finance.
You might have a good savings history however if you are overdrawn on another account this could also jeopardise your borrowing ability. It is important to keep your everyday transaction account as well as your savings account looking good.
Car loans. If your are thinking of buying a house don’t go out and spend a lot of money on a car. Lets say a car repayment is $500 per month, your car loan decreases your borrowing capacity. If you are thinking of buying a house and car, do the house first.
A few simple things to keep in mind when preparing to purchase your first property. All of these points can be clarified and explained further by your broker.
In preparation for your first property purchase there are a few more things to prepare and keep in mind other than your deposit.
Remember to keep your savings in a separate account, not just the account your pay goes into. This gives the proposed lender a clear view of your savings patterns.
It is always good to save more than your targeted amount as when you do move into your house there are always additional costs and expenses. Stamp Duty on the purchase of a house can be quite substantial as well as Conveyancing and Borrowing costs. You may also want to do additional landscaping or buy additional furniture. Your Broker can give you a full run-down of all costs involved in the purchase process.
If you do want that new lounge, TV or Fridge, it is always recommended you steer away from interest free deals or credit cards at this early stage.
Take extra care with your current Telephone and mobile accounts, and, if you are living with mates, electricity accounts. If you have a bad history in either one of these, it can stop you from getting a loan. Be responsible for your spending and bills especially mobile phone accounts as mismanagement of this could result in a default on your credit rating which makes it very tough to get finance.
You might have a good savings history however if you are overdrawn on another account this could also jeopardise your borrowing ability. It is important to keep your everyday transaction account as well as your savings account looking good.
Car loans. If your are thinking of buying a house don’t go out and spend a lot of money on a car. Lets say a car repayment is $500 per month, your car loan decreases your borrowing capacity. If you are thinking of buying a house and car, do the house first.
A few simple things to keep in mind when preparing to purchase your first property. All of these points can be clarified and explained further by your broker.
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