Just like running a marathon, preparation is required to ensure you are in the best possible shape to reach the end and achieve your goal.
The same principle can be applied to obtaining Finance.
Get your Finances in order.
If you have several savings accounts, try to reduce them down to two. You will be required to supply 3-6 months worth of bank statements to demonstrate genuine savings and an insight into your spending habits.
Try to reduce your spending, if you know you can be impulsive, put yourself to a 3 month test.
Avoid buying items on After Pay or Flexi Pay, as the monthly payment will have to be listed as a liability - which in turn, can affect your lending serviceability.
Peruse your bank statements to see how many Direct Debits are currently coming out of your account. It’s surprising how many people actually forget about “that” monthly payment.
Shop around to see if you are currently getting the best possible deal on communication, phone, internet packages, Netflix, Foxtel etc. The more you can reduce your monthly spending, the more you should be able to borrow.
The above are just some tips to get you in shape.
Contributed by Louise at Magick Finance
Louise is a Finance Specialist, MFAA Approved Finance Broker and can help you take the first steps to owning your home.
0431 753 580 or 5492 9292
Australian Credit Licence Number: 493573
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