5 things to do now to prepare you to buy your first home in the future!

Long before going to your first open house, there are some smart things you can do now to get you home buying ready in the future.

Published 26 August 2020

The good news - it’s never too early to plan ahead. Here are 5 tips to help get you off to a good start.

1 Build up a deposit

In order to prove to any future lender that you are a ‘safe bet' it’s a good idea to build up a deposit. As a general rule of thumb, the bigger your deposit, the better - and, the less you have to borrow, which will help to reduce your mortgage repayments. 

2 Get into good saving habits early

Having a history of regular savings into your bank account could make it easier for you to get a home loan later down the track. So make sure you get into a good savings plan early. Set up a new budget and practice living on it. Work in the additional costs of owning a home like additional bills, repair and maintenance costs, and include any extra that you would pay for a mortgage - this extra money can go straight towards your deposit.

3 Check your credit history

Before you apply for a home loan, it is a good idea to check your credit history. Are there any black marks against your name? Perhaps you forgot to pay a phone bill once upon a time? Any black marks against your name can significantly impact your chances of securing a loan. Thankfully, there are a couple of companies that can provide you with a copy of your financial history and let you know whether or not there are any problems on your credit record that you need to clear up before applying for a home loan. It is important to note that if you do conduct multiple credit history checks, be aware that lenders can see this and may potentially see this as a concern.  

4 Call your broker and organise a pre – approval

With your credit history in check and a deposit built up, it is often a good idea to seek pre-approval before you go shopping for a home. Pre-approval will give you a good idea of what you can afford, which means you won't look at properties that are outside your budget. Your local Mortgage Choice broker can help you gain pre-approval by comparing hundreds of home loan options from a variety of lenders.

5 Let the search begin

Now that you have built your deposit, sought the expert advice of a mortgage broker and organised pre-approval, it’s time to step up your search. Monitor the market closely, research different suburbs and look at a range of different properties so you can get a solid understanding of what is good value and why.

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Contact your local broker today and start putting the plans in place now for the future.

We’re here to help

Taking the first steps towards homeownership can be challenging, but it becomes much easier if you have a plan and a clear path forward. 

If you want to get a head start and start planning early, give your local Mortgage Choice broker a call today. They can guide you through the lending options available to you so you can get ahead in your journey and start realising your potential sooner.

For more information about becoming a First Home Buyer check out our Information Centre.

Posted in: First home buyers

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