Getting The Financial Foundations Set

Sometimes the hardest part about building or renovating a home is organising the finance. And if you’ve ever done it before, you’ll know how it can be trickier than your average mortgage.

Whether you’re looking to buy land and build, renovate an existing property or sell and purchase a new home, checking your financial foundations first before you start is essential!

Here are some top tips to getting the foundations right for your next project:

Check your borrowing capacity

One of the biggest mistakes people make is not knowing how much they can afford to spend before they start dreaming big. Having a realistic idea of your borrowing capacity not only helps you plan smarter and keep things within budget, but can also help you from over extending your monthly commitments.

Check your rate

If you have a current home loan, ask yourself “how long has it been since I checked I had the best possible product/rate”? Having a set and forget mentality with your home loan rate, especially in todays competitive rate market, is a sure fire way of missing out on potential better offers.

Check your equity position

If you’re looking to renovate or sell and buy again, getting an idea exactly how much equity you may have to use is vital! Getting a real estate or online property appraisal will give you an idea of where you stand currently.

Check your credit score

Now that banks have all adopted comprehensive credit reporting, it is more important than ever to keep an eye on your credit score. Not only does this help you identify any potential issues upfront but also helps you monitor your score for any potential fraudulent activity.

Check your expenses

Having an idea of your actual monthly outgoings is a great way to identify any areas that you may be able to cut back on or improve. Lenders these days look to rely heavily on your living expenses when assessing your affordability for a home loan. You would be surprised how that daily cup of coffee adds up over a three month period!

So where does your Mortgage Broker come in?

Ask your local mortgage broker, Scott Palazzi from Loan Market to help you with all of the above prior to the banks seeing your application. Scott has a wealth of knowledge within the industry and says knowing this information upfront helps set the foundations for your future project. In addition, Scott says this will give you the best possible chances of gaining that all important bank approval!

Contact Scott today on 0413 747 283 or email scott. palazzi@loanmarket.com.au