Money Tree: How To Grow Your Own Financial Success

Money Tree: How To Grow Your Own Financial Success

Ready To Buy Your First Home? 3 Mistakes You Need To Avoid

by Dora Carr

If you're ready to buy your first home, you need to be prepared for the process. Buying your first home can be an arduous journey, especially if you're not prepared. Unfortunately, without proper preparation, you can make mistakes that will delay the process. In fact, some mistakes can derail the process altogether. That's why it's important that you prepare yourself before you begin the process of buying your first home. Read the list provided below. Here are three mistakes that can derail the purchase of your new home. 

Failing to Select the Right Home Loan

If you're buying your first home, and you want to avoid mistakes, make sure you start with the right loan. You might not realise this, but there are different types of home loans for you to choose from, depending on your choice of occupancy. If you're buying a home to use as an investment property, you'll need to choose an investment loan. However, if you plan to live in your new home, you'll want to choose an owner-occupied loan. 

Failing to Establish Banking History

If you're ready to buy your first home, now's the time to take a closer look at your banking history. When you apply for your home loan, lenders will take a close look at your banking history. This includes the type of bank accounts you have, as well as the balance you keep in those accounts. Now that you're ready to buy a home, it's time to open a savings account. Once you open your savings account, make routine deposits into the account. In fact, your savings account is a good place to keep your down payment. That way, lenders can see that you have a dedicated account for your down payment. Your savings account also provides proof that you're prepared for rainy days. 

Failing to Clear Credit Blemishes

If you've got a few blemishes on your credit report, and you haven't started taking care of those issues yet, you might have problems with your loan application. You might not know this, but even minor credit problems can interfere with your ability to buy a home. In fact, credit problems can prevent you from buying a home altogether. If you do get approved for a home loan, those credit issues could increase your interest rates. To avoid problems with your loan application, clear up all of those credit blemishes before you apply.  

For more information on first home buyers financing, contact a professional near you.


About Me

Money Tree: How To Grow Your Own Financial Success

My name is Jamieson and my family refers to me as a self-made millionaire. That isn't exactly true. I am very successful financially, but I didn't do it on my own. With parents who showed me the value of money, an exceptional economics teacher who taught me how to grow an investment from just twenty dollars and sound financial advice from people I trust, I managed to achieve my dreams and financial security. I meet many young people who simply don't have the know-how to turn their earnings into investments. I started this blog to share some of the advice I received over the years and highlight some of the best options I see out there in the marketplace. I hope it helps you to plan and start your own journey to financial success. Money doesn't grow on trees, but with the right advice, you can make it grow yourself.