Looking to buy a house? Step-by-step checklist to get into the game

If you’ve never purchased a home before, the process can be a little daunting. A step-by-step checklist will help first home buyers get a foothold in the property market while keeping stress levels at an all-time low. Managing Director of LCI, Gerry Incollingo, has prepared a list of checkpoints to help streamline the house purchasing process. Know your borrowing capacity Before you start dreaming of the waterfront home with 6 car garage, it’s important to know how much the bank will lend you. You’ll need proof of: 1) How much you earn and how long you’ve been at your job. If you are self-employed, you’ll need to prove you have enough money to service a mortgage 2) Any credit card balances and whether you have any other personal loans, such as car loans or hire purchase loans 3) Your credit history or credit score 4) How much deposit you’ve managed to save for the house. If the bank agrees to lend you more than 95%, it’s likely you’ll be subject to Lenders’ Mortgage Insurance (LMI), which will up the amount of weekly/monthly repayments 5) A budget showing your spending habits (How much you pay for the gym, petrol, clothing, UberEats). To get a basic idea of the amount you may be allowed to borrow, you’ll find a variety of different calculators online that let you calculate an approximate amount you may be eligible to borrow. It’s only a rough guideline, as many external factors may come into play such as interest rates, credit scores and the… Read More