First Home Buyers are a promising sign, in my line of work anyway. If they’re making enquiries and coming back into the market, to me anyway, it has to have a flow on effect to the rest of the market. New buyers coming in to the market has to be a positive stimulus, surely?
What are lenders looking for from First Home Buyers?
A saved deposit is always a good start. Depending on the lender it can be between 5 and 10% or the purchase price. Saved is a key word as it certainly gives the borrower more options. Instead of just getting loan X as that’s the only one they qualify for, a saved deposit could give 10-15 options meaning for the possibility of a better loan, interest rate or product.
The other things to consider are matters such as employment stability, residential stability, account conduct and credit history. As I’ve mentioned before in previous blogs, making an informed decision is by far the most important. Being up front and honest and being able to address any areas of concern upfront makes all the difference. Finding out about bad credit or other issues once the application is in with the lender means we’re already on the back foot. We need to make the best decision first time.
If we can’t tick all the boxes, maybe due to a recent employment change then we just need to paint the finest picture that we can. We can build a case perhaps with tax returns, employment letters and contracts or whatever other information that can be provided.
If there is no saved deposit, a gift from family can be acceptable or perhaps parents being guarantors offering up their own house in some way to help the situation. No two loan applications are exactly the same, so again, discussions and informed decisions are paramount.
I believe the first home is the biggest purchase an individual can ever make so lets do it right…the first time.