With the recent changes to the lending environment even simple changes can make a huge difference to whether or not you can borrow money to buy a home. While we are big advocates for having a balanced lifestyle, If owning a home is important to you, you have to make it a priority.
Below is an interesting article from propertyobserver.com.au outlining some ways to be more appealing when it comes time to speak to your broker/lender.
BE ORGANISED – go to your lender with as much information as possible. Include expenditures, discretionary income, school fees and other costs.
MINIMISE YOUR EXPENSES – Once issues are discovered in a credit application it is difficult to overcome them. Work on minimising unnecessary spending in the months prior to applying. Less Uber Eats could have a significant impact on your chances of approval.
COMPULSORY CREDIT REPORTING – In place since July 2018, all banks have a responsibility to put all information into a personalised credit files, giving them more information on customers and impacting your credit score. If you’re a day late on your credit card, it is reported.
TECHNOLOGY TELLS ALL – Everyone of your transactions is being tracked and it could come back to haunt you come application time. You may regret the $300 you spent on clothes.
AFTERPAY EVILS – Credit schemes like Afterpay are classified as a debt and can be viewed in the same way as a credit card. Similarly, if you miss a payment and are charged interest, it could be potentially viewed as a default.