Getting into Home Loan shape!

Financial fitness is something that is rising in importance within the financial industry.

So what does this mean? Well just as you would get fit for a marathon, the same applies in the lead up to applying for a home loan.

You can start by checking your credit rating. A credit rating/ score/ history is a system that determines your creditworthiness to a lender. More specifically it is a representation of how you have conducted yourself from a credit perspective in the past. Lenders love a good credit rating, and so the more you can do to build a healthy credit rating will hold you in good stead. Ensure you pay your bills, credit cards and loans on time and this will get you well on your way. Of course you can check your credit rating at any time for free via systems such as Canstar and Equifax.

Next up we tackle credit cards and personal loans. Outstanding credit card balances can deter lenders from lending to you. So if you don’t need your credit cards consider closing them off or at least reducing the limit to as much as possible. The same applies to car loans and personal loans. The more unsecured debt you have the more it will impact your borrowing capacity.

And my final tip is to save save SAVE. Most internet banking sites have loan calculators, so work out what your new home loan repayments might be and start saving this amount per week. This will demonstrate to a lender that you are able to meet the repayments before even applying for the loan.

To hear more tips on how to get home loan ready, then contact Jackie today on 0409 563 892 or Jackie@fimafinance.com

*This information is general in nature only and does not take into consideration your personal needs, goals or objectives.