First time property buyer


Today I will be giving you the first time property buyer guide so that you are well armed to buy your first property. Remember that none of what I say here constitutes as financial advice. If you are looking for financial advice, in case you are looking for financial advise, please make sure to speak to somebody that is certified and registered with the FSCA. So a lot of people think I'm crazy when I say you need to at least have twelve months of planning before you make your first purchase. 

Especially if it is your first property that you're buying. And especial even more if you are going to be using a loan or some sort of special credit facility. I know some people have argued that maybe instead of looking at the home loan credit facility, there might be other options. I'm not going to get into that today. Today specifically when I speak about the home loan, I'm speaking about the home loan facility. So let's get straight into it. What is one of the first things that you probably need to do? 

I would suggest that one of the first things you need to make sure that is really, really spotless is your credit status, your credit rating, history, whatever you choose to call it. But you need to have a healthy credit score. But what does it actually mean? And why do you need to have a healthy credit score? Well, financial institutions like banks, or any other credit lender, before they even grand you a credit loan application or they grant you any type of credit, they are going to look at two specific things. One thing that they're going to look at is your affordability, and the next thing they're going to look at is your credit history. 

Your affordability speak to how much are you able to afford? Now, remember the bench mark is that you cannot use more than 30% of your income to purchase a home or to finance a home or to pay an installment on credit application for a home. Now they need to make sure that you have enough disposable income so that you are able to pay for the supposed amount of money that you would like to borrow from the financial institution. You cannot be over committed in terms of what other things you are paying or other credits you are paying what other agreements you are honoring under that specific income. 

To be continued...

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