- Clear your credit card
- Insure that if you are paying rent that the rent is paid by direct debit from your bank account to the landlord. (If you are living at home
and paying parents rent you should also pay this into your parent’s bank account).
- If you are saving make sure that the savings are put in on a regular basis. (I.e. you should lodge the savings every week or month).
- Bet online,
- Miss a direct debit
- If you have any other loans you should make sure you do not miss any payments
- Do not withdraw money from your savings.
- Do not withdraw cash from your Credit Card.
You should be in a permanent employment and not be on probation (exceptions can be made for professionals) like doctors who would be on contracts in different hospitals
The amount you can borrow is a multiple of your salary with deductions taken if you have other financial obligations like child support, dependant children, and other loans, Credit Card Bills or if you have a partner who is not working
In order to get a mortgage you will have to be able to demonstrate to the bank that you can afford the mortgage required
As a rule of thumb banks will want you to demonstrate that you can afford to pay your mortgage repayments and also be able to pay the mortgage if the interest rate increase by 2%
Before you apply for a mortgage you should insure that your bank statements are in order Some times you need to put a 6-month plan into place before you apply for the mortgage. This plan should include
Clearing your credit card in Full 6 months before applying for your mortgage
Not using your credit card for the 6 months prior to applying for a mortgage
If you need a credit card to book flights etc look at purchasing a prepaid credit card
If you are a First Time Buyer, no doubt you will have a lot of questions to ask:
- Should you go direct to the bank?.
- What is the first step?
- Direct or with a Broker?
- Use your visa card
- Should you opt for a fixed, variable or discounted rate?
- How much can you borrow and how much will it cost you?
- How do you position your mortgage application for approval?