I am often asked should I sell my home before I buy my next one – well life doesn’t always work out how it should and sometimes you just find the ‘dream’ home before you sell – so what to do? Check out my article for Canstar

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The Late Payment Problem

Applying for a mortgage for your first home is scary.

You’ve been saving your deposit forever.

You’ve prepared the paperwork and sent it to the lender.

Your fate is in their hands.

So many aspects can lead to rejection.

That’s what Tom and Sally discovered.

They rented while saving to buy their first property.

They thought a few years of renting and saving would set them up perfectly to buy their first property.

For over three years, they made every rent payment on time.

They were model tenants.

But one oversight halted their plans.

The couple decided to treat themselves to a holiday in January.

Sadly, they forgot to transfer their rent money from their savings into the main account.

The money came out of the account on Monday and made it overdrawn.

Their rent went into default.

They resolved the issue when they got back home.

But, when they wanted pre-approval on their first home loan, the lender said no.

They cited poor rental conduct.

Luckily for Tom and Sally, they managed to resolve the issue.

But not everyone has such an understanding lender.

Their story shows that you have to account for every little detail when applying for a mortgage.

Lenders check every aspect of your history.

Something as small as a single missed payment could ruin your plans.

We want to ensure that this doesn’t happen to you.

And to do that, we aim to make it as easy as possible to get your first mortgage.

We’ll show you more about the grants that are available to you and how to get your first property faster.

Join our First Home Buyer Facebook community to learn more about the framework
https://www.facebook.com/groups/firsthomefirstinvestment/

Stop, and breath – you got this!

Stop, and breath – you got this!

Investing Your Extra Money

“If you put your money in the bank, you’re probably getting two and a half percent and then you’re paying tax on it. So you’ll probably end up with one and a half percent of your funds as opposed to having an offset account…

In building up the offset, you’re building up your deposit for all your renovation budget for this property…

The other thing is, you pay it down and start paying a little bit of the principal off which a lot of people like doing. We talked about the benefits from an interest rate, it’s not going to have such a big difference to you on such a smaller loan amount.

But you know, it’s money that you don’t get on a longer period of time that you have to save to get to your next property.

So at this lower at these lower price points with a huge amount of yield that you’re getting, often you don’t have the growth potential. And that means that you have to save the equity to buy the next property rather than pull equity out of the property that you’ve got now…”

If you’d like a complementary call to look at the options of different loan types can provide then book a call http://investorschoice.com.au/bookacall

#homeloan #propertyinvestment #mortgagebroker #homereno