It’s Game on for Home Buyers
IF you’re that somebody we’ll see wandering through open inspections … not quite there … but with ear buds firmly planted so that you don’t miss one moment of a footy match, this blog is for you.
Actually, it’s for ALL prospective home buyers. However, with the 2019 AFL underway … and the Crows girls having the Adelaide Oval crowd in cheers as they dominated in their final … we’re running with it … a footy themed real estate blog! (let’s see how many footy puns we can get on the board)
Sport can be a breeding ground for life lessons … and this lesson is about being ‘match fit … nailing your preparation for a life event that even exceeds that “one day in September” in terms of significance. (except for those diehards perhaps)
Preparation. Win or lose, no AFL team has gone into any match without a lot of preparation and buying a house is no different. It’s the only way you can play this.
So, remove those ear buds, step away from this week’s footy tips and get your head into the game of home buying.
You need to prepare at least six months before you start looking, if you already have a home … and up to 18 months is a smart tactic if you’re a first home buyer.
We’ve spoken before about how the lending environment has changed, how the umpire (the banking industry) is getting tougher thanks to enquiries like the Royal Commission into Banking.
Gone are the days when you can get approval by simply producing the required deposit and a few payslips.
The winning tactics
Your budget is of course key to your plan of attack. It will of course dictate what you can buy and determine if you can convert in terms of securing finances and your ability to stick to (and save some at the same time) will score points with the banks.
Banks will be looking at your long-term loan payment prospects, so make sure you are clear on how you will cover a commitment that will take years if not decades to pay off.
You’re spending habits will play a big part, so when that tireless bank worker sits down at their desk with their highlighter pen, and your bank statements, you want to make sure they can’t identify any undesirable patterns.
Here are some of the things worth committing to:
A busy social life, travel, hobbies and a fondness for expensive takeaway could all be red flagged. Plan on living the quiet life for a few months. And if you enjoy a regular flutter at the TAB it would be wise to give that a miss too.
Make sure you are not spending too much beyond your means, weighing down your credit card or regularly dipping into those all-important savings. Put any big purchases like that trip, or new furniture, or even a new wardrobe, on hold until after you have bought
Don’t do anything that would bring down your credit score. Pay all bills on time, don’t apply for any new credit cards, and don’t take out any new personal loans until your purchase has settled.
If you are a renter make sure you have a spotless ledger (18 months’ worth).
So, the simple message is you can’t just grab the ball and run with it. Owning your own home is a great goal, but you’ll need to be disciplined and make some sacrifices to get there.
And if you need a coach, give Irusia a call!