What I want to talk about today is preparing for a loan. With a lot of my clients I’ll work with them for 3, 6, 12 months to 2 years to get them ready to buy a property. It is important to speak to me before you are about to buy a property because then I can give you advice on setting it up, budgeting and making sure you are in the right position when you go to buy. Some of the things we look at would be checking to see what you credit card and other debts are. Do we need to pay any of those down, do we need to reduce the limits? Making sure you are setting up the correct savings. An example of correct savings is having a separate savings account which you regular put the same amount in (eg the amount a mortgage might be) every week. The big thing for the banks at the moment is propensity. What that means is that you are able to afford the loan or show you can afford the loan now not just in the future. If you were paying $300 in week and your new mortgage would be $500 a week the bank would want to see you put aside an extra $200 a week. This would show that you can pay $500 a week mortgage.
I strongly advice if you are considering purchasing that you speak to me first before looking at houses or putting in offers. Being prepared is very important!
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