Landing in the property market can be a challenging task. There are many moving parts when it comes to purchasing property, and the checklist can seem long and daunting.
With so many lenders and options available, one of the biggest hurdles on this list is finding the right home loan. A mortgage is a long-term financial commitment, so making sure that you are set up with finance that is matched to your needs to an essential part in making the transiting into the property market as smooth as possible.
But getting a home loan can be a particularly challenge task if your credit history is less-than-perfect. A bad credit history can stay on your records for years, and that means that past financial outcomes now impact on your ability to plan for the future and build wealth and security.
So if you’re having difficultly finding finance, then here are some tips on what to work towards—and what to avoid—so that you have the best chances of securing a home loan ideal for your needs.
What not to do.
- ‘Spam’ lenders. Over-applying for loans with multiple lenders can have a negative effect on your credit history.
- Be dishonest. Lenders will thoroughly check loan applications, so always be honest with your application.
- Apply with poor quality lenders. Be cautious of any lender with an offer that seems ‘too good to be true’, especially if they are not an established or reputable business.
What to do instead.
- Budget & save. Make sure that your financial habits look as healthy as possible. Stick to a budget, structure your finances and save up a good deposit.
- Improve your stability. Lenders like stability in both your employment and place of address. A career change and home loan application do not go hand in hand!
- Get help. If you’re struggling to get loan approval, or don’t know how to assess your options, then there are home loan experts such as uno Home Loans and finance brokers who can help.
- Factor in Costs. Remember with your loan application to factor in one off relocation costs such as removalists, vacate cleans and packaging boxes.
What is a finance broker?
A respectable and highly-recommended finance broker can take your financial circumstances – including your income, past credit history and financial stability – and recommend a suitable finance option.
If your situation is less than ideal, a good finance broker should be able to look at your situation and be an advocate for your application by emphasising the positive aspects of your situation.
BCP Finance is a leader in discovering finance options for property investors, particularly those who have had trouble finding finance in the past. The team at BCP will assess your financial situation and match you with the right lender.
A good conveyancer completes the property picture.
Finance is only one part of the property puzzle. A conveyancer is a property expert who can help you assemble the picture with minimal amounts of stress and frustration.
While many practising conveyancers aren’t legally trained, our conveyancers will be able to assist and advise you throughout the process with the backing of lawyers and legal resources.
For more information on conveyancing – or if you are in need of conveyancing services – call Rose Lawyers on 03 9878 5222.