The decision to purchase a home is one that’s never made lightly, requiring substantial forethought and a level of financial organisation.
If you’re considering buying a home in a year’s time, here's a run-down of the things you need to be thinking about now.
Get your savings in order
A year prior to a home purchase may be a good time to assess your savings. Depending on how much of a deposit is required, you can put a budget plan in place for the year ahead by cutting down on expenditure and considering ways to earn more money. A history of regular savings in your bank account, combined with a good record of employment, will help you secure a home loan in the future.
Read this article to work out how much of a deposit you’ll need and what types of savings are accepted by Lenders.
Get your credit ready
When looking to buy a home, it’s essential that your credit history is in as good a shape as possible. This means poring over your credit report and ensuring everything is accurate. If you identify any mistakes, now is the time to correct them. Your credit history will be helped further by paying off any outstanding debts.
If your credit history is looking good by the time it comes to apply for the home loan, you’ll have a better chance of securing it. It's vital, then, that in the year between now and when you apply, you don’t fall behind on bill payments or accumulate debt. How is your credit score calculated and what can cause a default to occur? Read this handy Credit Scores 101 infographic to find out.
Brush up on the details
There are plenty of small, peripheral expenses and fees that are part and parcel of applying for a home loan. These have the potential to add up, so it's crucial to undertake comprehensive research into the details of purchasing.
This might include tax implications, administration and bank fees, stamp duty, legal fees, builder’s fees and more. To learn more about the main fees for Pepper Money home loan products, click here.
Other important considerations are the median price for homes in your suburb of choice and home loan interest rates – both of which can fluctuate in a year. You could also consider attending auctions without bidding, in order to develop a feel for the market.
Decide if you need expert advice
Expert advice is another potential cost, but there are benefits in engaging them. Whether it’s a buyer’s agent, accountant or real estate broker, their knowledge and specialisation could save you money in other areas – not to mention guiding you through some of the more technical aspects of buying a home.
All applications are subject to Pepper's normal credit assessment and loan suitability criteria. Terms, conditions, fees and charges apply.
This article provides you with factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. Neither Pepper nor its related bodies, nor their directors, employees or agents accept any responsibility for loss or liability which may arise from accessing or reliance on any of the information contained in this article. For information about whether a Pepper loan may be suitable for you, call Pepper on 13 73 77 or speak to an accredited Pepper Money broker.