Buying your first home is an achievement. It is a culmination of your years of hard work, and so it should go smoothly. If you plan to buy your first home this year, here are things to look out for.
Make sure your credit score is good
To get a good Home Loan Service in Taree, you must first have a good credit score. Lenders will only be interested in giving to people with documented proof of being good borrowers. A credit score of 700 and above is considered average regarding home loans. And how do you make sure your credit score is good? Here are some tips.
- Don’t miss your repayment dates. Even one or two missed payments will be reflected in your credit score.
- Reduce the limit of how much credit you have on your card. The lesser the credit, the better your borrowing capacity.
- Go for debt consolidation and move all your debts into one with the lowest interest rate.
- Don’t go for services where you buy now; pay later.
Find out how much you can afford.
When buying a house, your financial situation is the first thing you should look into. You have to see how much cash you have and how much monthly loan repayment you can afford on your monthly earnings. You should also consider your other obligations and future spending before deciding how much home loan you can afford. Based on that, you should look for properties slightly less than that. This way, you won’t fall into buying a home that may look great but is something you can’t afford in the long term.
Consider government schemes and loans
The government gives many grants and loans to first-time buyers. It can be anything between $10,000 to $30,000. The factors on which this amount depends are where you stay, whether you are buying as an owner-occupier and more. Other help from the government includes a waiver of stamp duty; some offer the option to pay annualised land tax in place of stamp duty, and so on. Hence, you should check your local government grants and schemes to see eligibility.
So, now that you know three important things to know when buying a home this year. Talk to a good company providing Home Loan Service in Taree and get started on the paperwork.