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If your goal is to buy a property this year, be it an investment property or a new home, you should begin preparing now. The key to a successful purchase is, of course, finance so you've got to be pro-active in how you plan to appeal to lenders. There is a whole range of factors that lenders consider when it comes to assessing your loan eligibility, and by thinking about these early on you'll be best placed to strike when the right property comes along. Lenders' policies certainly vary, but there are several common factors they will all consider in terms of determining your creditworthiness and approving you for a loan. The first thing they will look at is your capacity to service a loan - i.e. your income stream. A stable employment and strong employment history are the key elements here, so don't think about changing jobs any time soon if a property purchase is your top priority. Your broader financial position and history will also be a key consideration for lenders. |
This is where the timely payment of bills and debts is crucial. Ensure you minimise any personal debts such as credit cards and absolutely avoid missing payment deadlines or defaulting. In the midst of the holiday season, avoiding debt and keeping on top of bills might sound impossible, but don't let the silly season stand in the way of your larger financial goals. Keeping afloat over this time is quite possible if you plan your spending wisely. Draw up a budget and determine exactly how much cash you have to play with, then allocate it to entertainment, food and travel accordingly. The holiday season needn't be a lavish affair either - think of ways to show your loved ones how much you care without breaking the bank. And there are plenty of ways to celebrate without spending a fortune, but you've got to be smart - and strong-willed. If you're thinking about buying a home or investment property soon, come in and see us. We can help you prepare your finances to ensure you get that all important property purchase over the line. |
