Hoping to buy your first property? Make sure you sort out these two vital aspects first…

Julie Brownlee, Fsp Invest, 17 Apr. 2015

Tags: property, buying a property, first time buyer, how to prepare to buy a property, credit rating,



Buying your first home is an exciting adventure. Owning your own home is extremely satisfying, but it can be a rough road getting there.

There are many things you need to consider.

So how can you prepare?

Read on to find out more…



Start saving now for a deposit for your property


If you haven’t already, you need to start saving as much money as you can to put down on your property.

The larger your deposit, the less your bond repayments will be. And with interest rates still relative low, chances are they’re going to rise over the coming years. This will make your bond more expensive.

You also need to have money to buy things for your new home too. And you’ll need cash to cover legal fees, transfer duties and other costs.

So work out a strict budget now and stick to it.

By doing this, you can also plan how quickly you’ll save what you need before you start house hunting.


Work on your credit rating


To get a bond to buy a property, you need to have a good credit rating. If you don’t, the bank may refuse your application.

The good news is, while you save for your deposit you can work on building a good credit score.

Unfortunately in the eyes of financial institutions, no credit means bad credit. You have to show that you’re capable of keeping on top of repayments and managing debt before a bank will give you the money you need for a bond.

You can easily start working on this. Get a cell phone contract if you don’t already have one. Also use your credit card occasionally, but ensure you pay off the balance each month. And if you’re changing car in the near future, take out some financing.

If you manage these credit arrangements well, banks will look at you more favourably.

Having a decent deposit and a good credit score are two things that will help you achieve your dream of owning your own home.

So there you have it. Sort out these two vital aspects so you can buy your first property.

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