Are you considering applying for a home loan?
Category News
Ask yourself these 5 questions before you decide:
Do you know what your buying potential is?
Not knowing what your buying potential is can very easily lead to wishful thinking about your financial capability and could result in disappointment. Look at your expenses every month and be realistic about what is left and what you can afford.
Do you have a healthy credit record?
In order to pass a credit check it is vital that you always meet your monthly debt repayments on time and to pay the minimum monthly installment on your credit card. Also keep in mind that no credit record can be just as bad as having a poor credit record as banks need proof that you know how to manage your debt.
Do you have a secure job with a stable income?
While it is certainly possible for people earning commission or contract workers to afford home loans, most lending institutions prefer it when home loan applicants have security. For your own peace of mind it would be better to apply for a home loan when you have some form of financial and job security.
Are you applying for a 100% home loan or do you have cash for a deposit?
Your chances are better of being granted a bond if you have a deposit saved and this could also influence the interest rate that is given to you.
Were you successfully pre-approved by a bond originator?
If this application was successful and your circumstances don’t change chances are your application with the lending institution will be as well.
Author: Seeff
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