Are you thinking about buying a house for your family? Buying a house in Perth, Sydney, Melbourne, Newcastle or any other city you wish to live in and raise your family will then be possible.
Renting an apartment may work in the beginning especially when you’re living solo, but once you already have a family, you would want to transfer to a bigger house and a house that you can call your own.
Thus, buying a house will come to your mind. However, are you financially prepared to finalise and make this plan a reality? Applying for a home loan will be a big help to achieve this reality.
Applying for a home loan is a big decision as well as buying a house. For first time borrowers who wants to settle in Sydney, Newcastle or nearby areas, you can look into the NPBS website and check information about home loan in their home page or you should make sure to take into consideration these factors first before you decide to apply for a loan:
- Income – most mortgage and loan companies request to know your salary income to know if you are eligible to pay. Therefore, you should ensure that your income will pass the requirement. Personally, you should also do your accounting and list down all your monthly expenses and see if paying for mortgage will fit your budget. You should be 100 percent sure that you will be able to pay off the loan until the end.
- Down payment – usually, you need to pay 20% down payment when you are buying a house. So beside having a qualified income rate, you should also secure money for the down payment. So if you are looking to buy a house, it is advisable to research for the price range of house that you wish to buy, then save money for the down payment.
- Personal Assets – yes you have the down payment money, but, do you have anything left for your personal savings? Usually, lenders look at your personal assets after paying the down payment. You cannot pull out all your resources from the bank just to pay the down payment. What if there is an emergency and you will be needing money for it? So make sure that you have extra. It is for your own good as well so you feel confident in case something didn’t go well.
- Job security – have you been in your workplace for at least two years? That is very important factor because you need to have a secured job in order to pay for your debts. Before you apply for a loan, you should make sure that you have a strong and secured future in your job or business. It would be best to have extra sources of income too.
- Type of loan – lastly, you should decide what type of loan is suitable for you. It is advisable to study the different pros and cons of different types of loan and then pick the type of loan that is perfect for your financial status and type of lifestyle.
If everything seems to be good on your end, then you are probably ready to apply for a housing loan. That’s very exciting indeed!