Your credit score may play a bigger role in your finance application than you realise.
Many people do not check their credit file until they are ready to apply for a home loan, investment loan or business finance. However, discovering an error or unexpected issue at that stage could cause delays, limit your options or affect the outcome of your application.
Your credit file is held by credit reporting agencies and can include information such as:
- Previous loan and credit applications
- Your repayment history
- Credit card and loan accounts
- Defaults or overdue payments
- Other credit-related activity
Checking your credit file before applying for finance gives you the opportunity to review the information, confirm your details are correct and address any potential issues early.
If you notice something that does not look right, you may be able to request a correction directly through the relevant credit reporting agency.
A little preparation now can help make the finance process much smoother later.
Planning to apply for finance soon?
Speak with the Hypothèque team before you begin. We can help you understand what lenders may look for and make sure you are better prepared before submitting an application.
Buying your first home? Start with these five essentials
Buying your first home is an exciting milestone, but it can also feel like there is a lot to consider before you are ready to make an offer.
From understanding your budget to researching the property properly, a little preparation can help you make more informed decisions and avoid costly surprises later.
Here are five important things to keep in mind.
1. Research the area
It is easy to focus on the property itself, but the surrounding area can be just as important.
Consider nearby shops, schools, cafes, restaurants, parks and public transport, as well as commute times and future development plans. Think about whether the location will suit your lifestyle not only now, but in the years ahead.
2. Know what you are looking for
Before attending inspections, create a list of your must-haves and nice-to-haves.
This might include the number of bedrooms and bathrooms, outdoor space, parking, natural light, storage, property orientation or whether you are comfortable completing renovations.
Having clear priorities can make it much easier to compare properties and avoid being swept up in the excitement of an inspection.
3. Get your finance sorted early
Before you begin seriously searching, speak with a mortgage broker about your borrowing capacity, potential repayments and whether pre-approval may be appropriate for your situation.
Understanding your budget early can help you narrow your property search, make decisions with greater confidence and avoid spending time looking at homes that may be outside your price range.
4. Do your own research
Remember, the selling agent represents the vendor. While they can provide helpful information about the property, it is still important to conduct your own research and seek independent advice.
Review recent comparable sales, investigate the property’s history and carefully consider the value before making an offer.
The Hypothèque team may also be able to provide an RP Data property report, giving you access to useful insights that may not always be readily available to the public.
5. Arrange the right checks
Before committing to a property, consider arranging a building and pest inspection. If you are purchasing a unit, apartment or townhouse, a strata report may also help identify potential financial, maintenance or building-related concerns.
It is also important to have a conveyancer or property lawyer review the contract before you sign.
These checks may feel like an additional expense, but they could help you avoid much larger costs and complications in the future.
Thinking about buying your first home?
The right preparation can make the path to home ownership feel much clearer.
Speak with one of our brokers about your borrowing capacity, finance options and the steps you can take before beginning your property search.
Book a chat with the Hypothèque team today.
