First Home Buyer Are You Lender Ready

Peter Pakarinen | June 03, 2019

The election is over the government has promised a 5% deposit incentive for First Home Owners. So are you Lender Ready?

Don't wait until their policy is announced to see a mortgage broker to see if you qualify for a home loan. You may only require a 5% deposit but that does not mean you are lender ready.

Make an appointment today to visit a broker, this will be the best investment you can make to get into your first property.

A Quick Guide to Being Lender Ready

Time - Golden Rule Number One you need this to get your finances in order.

Transaction History - You will need up to 3 months of clean transaction history Bank, Credit Card and loans.

Stability - Save, Reduce Costs, No New Liabilities, Keep Up to Date

Spending - Stop spending and reduce your costs as much as possible.

Up to date - Repayments / Liabilities / Loans - Make sure all repayments are up to date, no overdue accounts, no defaults.

Liabilities - Loans / Hecs / Credit Cards - No new credit of any form if you can help it. Try and pay out any small debts. Every dollar of liability reduces your potential borrowings.

Deposit - Start saving that 5%.

Savings - Demonstrate that you can save. A lender may require you to hold 5% of the purchase price for 3 months. If you rental lease in your name lender will accept 12 months of clear payments.

Identification and Change of Name - Ensure that your name is the same across your ID's.

Address Details - Addresses are correct your Driver's license, Bank Statements, Rental Ledger.

Employment - Casual require a minimum of 3 months.

Changing Jobs - Ok, but Overtime and Bonus may not be accepted if you have been less than 2 years. Depending on industry.

Credit File - Get a copy of your credit file asap. Check if the information is correct.

For a more complete and comprehensive guide please contact Peter Pakarinen from Aussie Ramsgate.

Cheers

Peter

Aussie Ramsgate