If none of your co-applicants has ever had a loan, store account or credit card before, you may want to consider opening a credit account purely to build a positive history. Of course, it’s important not to fall into the trap of using credit unwisely – keep your eyes on the prize of your home loan and treat any credit facility responsibly. 4. Bide your time 10% of your credit score is based on how many new loans you’ve taken and inquired about over a certain period of time. So, wait until you are ready to take out a bond before you do your loan shopping, and then, complete it within a 45-day window, so that it’s treated as a single loan enquiry. Credit scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which enquiries occur. 5. Get pre-approved for a bond before looking Imagine falling in love with a property after many months of searching. Picture the immense joy of discovering that your offer has been accepted. Now, imagine what it would feel like to have the rug pulled out from under you when you realise that you cannot qualify for the required home loan amount. The disappointment of losing out on their dream home often leaves homeowners unwilling to continue the search, delaying or even grinding the process to a halt altogether. While acquiring pre-bond approval might seem like an unnecessary item of admin that you simply do not have the time for, buyers are regularly surprised by what they thought they could afford, and what the banks would grant them when it finally reached that point in the process Courtesy of Property24 | RE/MAX | Just Property | Rawson
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