SOME VALU­ABLE TIPS FOR THE FIRST-TIME HOME BUYER

CityPress - - Business -

1 Con­sider 100% bonds

If you don’t have a de­posit, banks can award you all of the money. Ac­cord­ing to home loan orig­i­na­tor Bet­terBond, sta­tis­tics show an in­crease in the num­ber of 100% home loans. Most of these types of bonds get awarded to first­time buy­ers in lower in­come brack­ets.

2 Check the value of the prop­erty

Banks don’t like lend­ing money, specif­i­cally 100% bonds, when the value of the loan is more than the prop­erty is worth. Make sure you get an eval­u­a­tion be­fore ap­ply­ing for a bond.

3 Don’t take on more debt

You of­ten have to be in debt to get more debt. What counts is how you man­age your debt – not the ac­tual amount of debt that you have. So don’t ac­cu­mu­late debt, but in­stead con­cen­trate on get­ting a clean credit score so you can qual­ify for a bond more eas­ily.

4 Save up for a de­posit

As men­tioned ear­lier, it is pos­si­ble to get a 100% bond. But it can be far faster and eas­ier to ob­tain a mort­gage if you put some of your own money down. The banks see the ar­range­ment as less risky if you also take on some risk.

5 Get preap­proval

Be­fore putting in an of­fer on that dream home, make sure that your bank will lend you the money. You could be sorely dis­ap­pointed if you find out later that you do not qual­ify for that amount.

6 Check your credit score

You need a good credit score to qual­ify for a home loan. The good news is that you can ob­tain your credit pro­file for free once a year from the credit bu­reaus.

. To ap­ply for Flisp, con­tact or visit the hu­man set­tle­ments depart­ment

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