SCARY STORIES AROUND THE CAMPFIRE. Remember those? Campfire stories are some of the most captivating โ and scary. Just like these 3 scary stories, I continually hear about being a first home buyer trying to get a loan in this current marketplace. You know the ones โ those caution stories you hear, but they just aren't true. Things like: 1๏ธโฃ Do I need a Pre-Approval? 2๏ธโฃ Do I need to have a 20% deposit to purchase property? 3๏ธโฃ Do I need to wait to have genuine savings? But you wanna know the truth about each one of these "scary stories"? Here's the reality, minus the Bogeyman: โ Just knowing you qualify for a home loan is not enough. Currently, most lenders do not fully assess pre-approval, and many lenders are giving out approval in principle. Rather than going for multiple approvals in principle with many lenders, you should source a great mortgage broker. Cough Cough... We can do a loan qualification review, which is a fully assessed financial analysis, similar to what a credit assessor would do. We will analyse your credit report and monthly spending via bank statements and check that your income is appropriate with that lender's policy. โ Of course, 20% is the ideal deposit, but young people can not save quickly enough for the suburbs they are looking in. Having a higher deposit will be better due to lower repayments and better rates, but there are lenders and products on the marketplace that allow you to get into the property market with as little as a 5% deposit. โ Genuine savings is a term the bank uses to describe a specific savings pattern; generally, they want to see you hold at least 5% of the properties purchase price in one of your bank accounts for at least three months. Fortunately, not all banks need to see genuine savings; there are a few lenders that will allow you to use your rental history for the past 6-12 months, or some lenders do not need any genuine savings. There you have it - nothing to be scared of! Tell me... which one was the most surprising to learn? ๐๐ผ https://www.instagram.com/p/CU_ehBhp7MJ/?utm_medium=tumblr















