Do your plans involve purchasing a home, renovations to an existing home or funding for changes in your business?

Here are my top tips to getting the best lending approval to fulfil your property dream.

MINIMISE DEBT – Short term Debt such as credit cards and personal loans can affect your ability to borrow to buy a home.  Aim to repay any debt, but if that’s not possible, minimise it as much as possible to help your chances of getting a mortgage.

DEPOSIT – The higher your deposit, the lower your mortgage and therefore the cost of borrowing.  Ideally you will have 20% of the purchase price, however many people are still buying first homes with less than 20%, but it costs you more to do this. An adviser can explain the differences.

BUDGET – Make a budget and stick to it.  More money buys more space, but not more happiness.  Ensure you don’t stretch your budget too far as you still want to have a comfortable lifestyle. Minimising your regular expenses can also assist with enabling you to get the mortgage you need.

RESEARCH / DATA – Learn the steps to buying a home before you get started.  There are lots, and an adviser can help outline these for you.  Data can help you make an informed decision.  The ILG Mortgages team can run free reports on any properties you are interested in to assist with your decision.

THINK LOCAL – Find an agent that you connect with, who has extensive local experience and knows their market.  Again, good data here can help.

TAKE YOUR TIME – Life circumstances often make people feel rushed to buy.  Slow down and breathe, your perfect home may take time to find but you will find it.

CONSIDER RENOS – The Neighbourhood usually drives investment returns.  If you can afford a lesser property in a more desirable neighbourhood, you may get a better return on your investment then purchasing your dream property in a less desirable neighbourhood.

PRIORITIZE / BE OPEN-MINDED – It is rare to get everything you want in one property.  Think clearly about what matters most. Write your list but be willing to compromise along the way. You may buy something you didn’t expect to like.  Viewing a property online can be very different to visiting it.

INSPECT – Make sure you know what you are getting into with a thorough home inspection.  Take your friends, family and trade professionals to have a look.  Opinions of others can make a difference, so it’s important to take your time when making such a large investment.

HAVE FUN – Buying a home should be exciting! If it is becoming a chore, it may be time to review some of the steps above and see if anything needs amending.

If you are ready to go shopping for your dream home or top up your mortgage to renovate or for business changes, check out how Rachael Thompson (the Smarter Mortgage Lady) helps her clients here: https://rachaelthompson.co.nz/