One of the biggest hurdles to clear before purchasing your first property is getting your home loan approved. You can search for the perfect place all you want but without a lender willing to accept your loan application, you wont get far.
Here at Advantage Finance, we're experts when it comes to negotiating with banks and getting your home loan past go. With the aim of providing a little help to those who are considering buying, we've whipped up three simple tips to making this process just a little easier for you.
Don't borrow beyond your means
The prospect of owning your own little piece of Australia is extremely exciting. But it's essential that you keep your head at this stage and consider your purchase logically. The more you ask to borrow relative to your income and repayment capacity, the less likely your loan will be approved.
The SA Govt lists Metropolitan Adelaide's median house price at $435,000, whereas the median outside of the city is a lowly $260,000. If saving for a deposit is proving to be a struggle, you might want to buy a few suburbs further out, drastically reducing how much you need to put together. You'll be more likely to get approval and your mortgage repayments will be more manageable.
Keep your credit score in check
MoneySmart's credit card clock puts Australian credit card debt at over $31 billion.
Debt isn't inherently bad. A mortgage on your first home, for example, is generally considered as good, constructive debt. On the other hand, lavish credit card purchases, and similar credit expenditures are usually less beneficial.
MoneySmart's credit card clock puts Australian credit card debt at over $31 billion, or $4,221 per person. Is your debt a little out of control? If so, before buying a home it's essential that you quickly rectify your situation and check your credit file. Lenders can see all of your credit history and if you there's any evidence that you struggle to repay debt they may decline your home loan application.
Get a little help
Getting your home loan approved can be a stress free and straightforward process with the help of an experienced South Australian broker from Advantage Finance. We're not like typical mortgage brokers who approve your loan and disappear in the wind, either.
We stay with you throughout the process to ensure that your home loan process is as easy as possible for you. With the right finance products and tailored advice, buying your first property doesn't have to be difficult.