When looking to build your new home, the very first step you need to take is to assess your finances. If you’re like most people, you will need to take out a home loan to begin the purchase process. Can you confirm that you have good financial standing wherein the bank will be willing to back you? If your answer is “yes”, then you could be moving into your new home before you know it.
Get rid of debt.
Debt, especially a sizeable one, could be detrimental to your home loan application. Establish a budget, stop using your credit cards, and pay off your debt. Your credit score will look more appealing to a lender that way.
Save as much as you can.
You’ll need to make a deposit when you take out a mortgage, so you need to save up for it. To maximise your savings, set up a separate savings bank account that you can regularly put money into, and reserve 20 percent of your income for it.
Keep at your job.
You need a steady job for a minimum of 3 to 6 months to get approved for a loan. Lenders will surely review your gross income when you apply—this confirms to them that you have the ability to make your monthly payments.