murraybridge 
Thinking about breaking into the property market this year? With low interest rates and relatively affordable property prices there’s possibly no better time to buy. If you want to increase your chances of securing a home loan then you’re going to need to get your finances sorted as soon as you can.
Here are some things you’re going to need to avoid in the lead up to buying a home:
1. Job changes
Lenders will look at your employment history when assessing your application to see whether you’ll have a steady income coming in to pay off your mortgage. While not all job changes will be looked at unfavourably, regular job changes or long periods of unemployment can be a cause of concern. So if you’re on the job hunt before applying for a home loan it could be worth holding off until after you’ve bought a home. That is unless you know you’re changing into a secure job or will be getting a higher pay, which could then help your application.
2. New credit cards
If you want to increase your borrowing capacity then it might be worth cancelling any credit cards in your name, or at least reducing their limits. That’s because the limit on your credit cards will be considered as a debt by lenders, regardless of whether you have anything owing on them.
3. Subscription services
Before buying a home you’re going to want to have as much money in the bank as possible, so it’s a good time to take ask yourself where you might be able to cut back. Multiple subscription services, such as streaming services or gym memberships, can eat up a large chunk of your pay each month and make it harder for you to save. Plus, lenders like to see evidence of responsible spending habits when they look at your bank statements and may question any ongoing expenses they come across.
4. Bad credit history
It’s a good idea to check your credit file before applying for a home loan. This is so you can ensure it’s accurate and make steps to improve any negative marks. You may have a lower credit score if you have things such as unpaid bills or a history of making late payments. You can refute anything on your credit file if you think it has been added as a mistake, otherwise you may need to wait for the negative marks to be removed, which can take as long as 5 years.
5. Applying for multiple loans
While it might be tempting to get pre-approvals from multiple lenders so you know where you stand with each one, this can actually hurt your credit score. Any home loan application you make will be marked as a credit enquiry on your file, and a lender won’t know whether or not you took out a loan, or it was declined. To ensure you don’t have to explain yourself when you make an application, carry out your home loan research before making an application so you only need to apply once.
