Getting into your first home doesn't have to be hard.
But, insert (Mum, Dad, Friend, Neighbour) said we wouldn’t be able to get a loan. Generally speaking, this advice is given with the best intentions but not always is it given with a full understanding of the process of getting into your first home.
I recently had the pleasure of helping a couple Mel and Dan who were told exactly this. I'll use them as a real-life example from which we can hopefully all learn something from.
Case Study: Mel and Dan given bad advice!
I first called them late last year. It was a busy time and Mel had assumed that everything they had been told by well-meaning friends was true and they were not in a position to get a loan for their own home so didn’t prioritise catching up. They had been told their deposit was too small and that they had too many other debts.
Both had full time jobs
They had a credit card each
They had one personal loan
They had a small deposit saved but it wasn’t enough on its own
Once we finally got together a couple of months ago, we secured a preapproval within a week of meeting for a new home up to the value of $550,000 – to say they were ecstatic is a bit of an understatement! Mel and Dan have since gone unconditional on their land and will commence building in the next month.
This is just one example of many. I continually encounter people who have unnecessarily held back from reaching out as they mistakenly think they will not obtain approval for a loan.
Try not to listen to the negative chatter that is out there in everything we do. There will always be naysayers. I strongly suggest putting aside 30 minutes to have a chat to someone like myself that does this day in day out. That way you’re getting the facts.
Home finance is like a puzzle and sometimes it just takes a bit of extra looking to find the right piece. Low deposit, no deposit, long term savings, short term savings, low doc, casual and self-employed. Often there is a match you were not aware of - send me your challenge and let's see how we go!