If your goal is to buy a property in the New Year, be it an investment property or a new home, you should begin preparing now. The key to a successful purchase is, of course, finance so you’ve got to be pro-active in how you plan to appeal to lenders. There is a whole range of factors that lenders consider when it comes to assessing your loan eligibility, and by thinking about these early on you’ll be best placed to strike when the right property comes along. Lenders’ policies certainly vary, but there are several common factors they will all consider in terms of determining your creditworthiness and approving you for a loan.

The first thing they will look at is your capacity to service the loan – ie. your income stream. A stable employment and strong employment history are the key elements here, so don’t think about changing jobs any time soon if a property purchase is your top priority. Your broader financial position and history will also be a key consideration for lenders. This is where the timely payment of bills and debts is crucial. Ensure you minimise any personal debt such as credit cards and avoid absolutely missing payment deadlines or defaulting.

You should always draw up a budget and determine exactly how much cash you have to play with. If you’re thinking about buying a home or investment property soon, come in and see us. We can help you prepare your finances to ensure you get that all important property purchase over the line. Contact John Whitten on 0749722081 or 0410433919. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).