Before you start to look for houses in Australia that you want to buy, it would be best to first have a plan on how you can qualify for a home loan. It may not be that easy to qualify for a home loan big enough to buy your dream house or investment property, but you can do something to easily qualify for a home loan big enough in relation with your family income.
Here are some things you must do to qualify for a reasonable house loan:
Set a Goal
Cooperate with your real estate agent and have an exact maximum monthly amount that you are capable to maintain. Besides your real estate agent, your lender can also determine how much loan you can have in considering your current financial situation.
Make sure you tell your lender what your real financial situation is. Tell your lender if you have any pending improvements to your income, like a coming promotion, an up coming new source of income, or other businesses. Don’t forget you will have extra expenses such as stamp duty which you have to include into the loan.
Save for Down payment
Create a plan on how to save money for the down payment of your house. You can find another source of income or you cut expenses in order to save the right amount of money for the down payment of your house. You can then calculate how much money you can save per month with the plan you have made and calculate as well on how long it will take for you to save the needed amount for your down payment. If you have saved enough money for your down payment, you can then apply for a house loan.
Stay out of Debt
Staying away from debt will make your credit rating better, which means it will be easier for you to apply for a house loan. Also, by eliminating your debt, you can pay for the monthly payment of your house loans easier. To eliminate your debt, you can pay your credit cards, sell you care, or trade it for something cheaper, and eliminate the rest of your debt.
Besides a house loan, there are other alternatives you may also consider to get a house. You can approach your real estate agent for more information about these funds. If you are a veteran, for example, you may consider having a Veteran’s Administration loan. This will allow you to get a loan without a down payment. A balloon mortgage is another thing you may also consider, this will allow you to pay lower mortgage.
Home for Sale
You can also look for a home for sale that has an assumable mortgage and a reasonable interest rate. This means you will continue paying for the house for sale so that the house will be yours. The amount you will continue to pay is the difference between the selling price and the amount still to be paid on the loan. If this assumable house has a good interest rate, you have a bigger chance of qualify for this loan.
Look for a smaller home or a more affordable home for your house loan. You can simply remodel this home to look like your dream house. Later on, you can trade your home for the home you really want. The buying and selling of home can help you a lot to qualify for a bigger house loan.