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.