Getting Ready to Buy
- Try not to change jobs just before buying a home. Employment stability is an important factor for a lender. As a general rule most lenders prefer 6-12 months in your job. There are exceptions though and this is a good place to make use the experience of your Lime MB.
- Save 5%-7% for a deposit – this will take care of deposit and should cover any contribution to lenders mortgage insurance if the lender does not allow you to add all this to the loan.
- In addition to your deposit consider stamp duty, settlement agents fees, transfer duty, and local council rates when estimating the total amount of funds you require.
- If you are self employed most lenders require 2 years financials, tax returns and assessment notices. They will also require you to have your abn for 2 years. There are exceptions too this, so speak to your Lime MB Broker if you do not have 2 years financials.
- Run a credit check. You can do this for free at http://www.mycreditfile.com.au/products-services/my-credit-file With respect to your credit file, if you have more than 6 applications/enquiries on your file in the last 6 months talk to your Lime Mortgage Broker before making your application. Several lenders will decline your loan in this instance.
- If you have ever had bad conduct with your current lender (i.e. overdrawn your account, missed/late payments on your credit card, etc) ensure you discuss this with you Lime MB.
- Ensure the first 5% of your deposit is money you have saved and/or held over a period of 3 months or more. If you receive a gift, ATO refund, bonus etc lenders may require you to hold this for 3 months before allowing it as part of your first 5% deposit.