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How to Prepare to Buy a Property

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plant your savings seeds to grow your investments

It takes a while for a plant to grow from seed.  Our goals and dreams are the same.  And if one of your goals is to own property, then planting seeds now will allow you to reap the benefits of growth later on.  Even if its just popping some extra money into a savings account, you are preparing the ground for financial growth down the track.  If you’ve decided that now is the time to finally bite the bullet and purchase property – whether its for investment or your own home, there are few things to be aware of when considering taking the leap and applying for a loan. First thing to remember is you have to start somewhere, so start small. 

Your first purchase is unlikely to be your dream home, but once you’re in the market it will be easier to gradually upgrade to the perfect place when the time is right.

Here are a few useful tips to ensure you are well prepared for the big step of home ownership…..

  • Minimise the number of credit/store cards you have, and the limits on those cards, because when most lenders look at your ability to repay a mortgage, or any other kind of loan, they factor in any credit cards being drawn to their full limit.
  • Write a properly thought-out budget that you know you can stick to before you borrow. Remember that writing a budget is easy - sticking to a budget is hard.  Did you know Endeavour staff can help you put together a budget, or you can work out your own budget using this handy budget calculator.
  • Keep on top of your bills, even the little ones -  Defaults are usually listed on a credit file after three months of missed payments on a debt commitment. Anything from an unpaid phone, electricity or credit card bill could leave a smear on your credit history.  
  • If you're applying for a loan, it's pretty much impossible to provide too much information to lenders -  tax returns, pay slips, credit card repayments and bill payments are all useful.  
  • Though you may not have thought about it, it's highly likely you already have a credit file even if you've never taken out a loan or have a credit card. A history can by built through phone bills, internet and utility bills, residential leases, etc. What's more, you can request a free copy of your own credit file from Veda Advantage - if you haven't investigated your credit history before, it's certainly worth considering.
  • You may have thought to yourself at some point, 'how can I improve my credit history?' It’s a really great question and believe it or not, the easiest way to do it is to save. If you set up a savings account, and make regular deposits for a few months, you are showing lenders that you can keep a financial commitment. The deposits don't even have to be big ones, just putting away 50 dollars a week would show lenders you’re able to commit to a budget and save.

Being able to stick to a budget, keep your bills paid on time and being committed to a savings plan will all make life easier no matter who you are are what you are planning for your future.  But they will also make applying for a loan easier too.  Less hassle means less stress, which is always a good thing.  

For any other loan enquiries explore the Endeavour website or get in touch with a friendly customer service operator on 13 13 61. 

Alison Gallagher is a freelance writer, resourcefulness expert and entrepreneur. She has been featured in various publications including Stellar Magazine, Australian Health and Fitness Magazine, and Cleo Magazine. Alison is particularly passionate about sharing practical tips on how to live simply, sustainably and seasonally.