Buying your first home is exciting, but it also comes with some big decisions that will likely affect you for many years to come. In order to boost your confidence when buying your first home, here’s some prep work before you start looking.

 

1. Have your deposit and paperwork in order
In order to improve your chances of swooping in and getting your dream home ensure that your paperwork, deposit and pre-approval are all organised and ready to go. Lenders now require a detailed breakdown of expenses and up to 6 months’ worth of bank statements that confirm those expenses. Previously, most Lenders were willing to accept a client’s estimate of their expenses provided (that estimate) was above the House Expenditure Measure (HEM) for basic living expenses. Generally, the time period required to demonstrate living expenses is 6 months prior to application, which means you now need to start preparing your finances well in advance of an application. At ActonLendingSolutions we invest a lot of time and energy into developing cash-flow plans that allow our clients to prove they can meet their future loan repayments.


2. Decide on your home buying strategy
In order to figure out your home buying strategy it is important to decide on your priorities, short and long-term goals and your finances. For example, if you’d prefer to move into a home which is already landscaped you might want to consider buying an already established home. Not too long ago, the choice of whether to live in an apartment or house was purely based on your finances. You’d rent an apartment until you could afford to buy a house, but apartment living is growing in popularity whether out of preference, convenience or both. The choice of location is also a high priority amongst home buyers. Proximity to local cafés, shops, schools and parks; low crime rates; street access and parking as well as access to public transport and whether you want to be near (or away from) the “hustle and bustle” are just some of the attributes worth considering. What really shapes your decision is your life stage, relationship status and personality and each of these home buying strategies come with their own financial positives and negatives, hence why deciding on your strategy is important and will also save you time when searching the real-estate market.


3. Get expert advice
Let’s be honest the questions, processes, rules and decisions that come with buying your first home can be daunting. Not to mention that everyone has an opinion and likes to give financial advice (while having little to no qualifications to back it up). A mortgage broker can help you navigate the different lending solutions available, give you honest advice and explain the nitty gritty.

For a free consultation with one of our mortgage brokers, contact us today.

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