Perth, WA (PRWEB) February 12, 2013
Feb. 10, 2013
Recent reports are pointing to a recovery in the Australian economy. In the Fitch Residential Mortgage Briefing report, the company has noted that the future outlook for the housing market is "finally expected to turn a corner in 2013" and expects stable prices in property value.
RP Data has also reported increases in every capital city except Melbourne throughout Australia over the last 12 months. While the market is still recovering at a slow rate, these reports point to a favorable outlook in the housing market.
Good News For First Time Home Buyers
What does this mean and why is it good news for those in the market for a new home? Tim Lawless from RP Data commented that the "the latest housing market data adds weight to the argument that interest rates may be at the bottom of the cycle."
In other words, interest rates will likely start to increase as the market starts to recover. Those looking to buy homes in Australia have an opportunity to lock in low rates for home mortgages while the market is still turning a corner.
Qualifying For a Mortgage
It may seem intimidating to work with a lender as they will want to know everything single detail about your finances but what they are doing is assessing your ability to pay back the loan and how much you can qualify for.
While it may seem uncomfortable to disclose such details about your personal life, this can actually work in your favor. Lenders use information about your current financial status to better determine the type of loan that is ideal for your situation.
Asking yourself the following questions will help to improve your chances of getting your application approved as it is what lenders typically ask to first time home buyers.
Income - How much are you currently earning? What is the source of your income and how reliable is it? Your finances will affect how much you are able to borrow and whether you qualify for a mortgage. Lenders typically ask for at least two years of income statements to determine job stability.
Debt - How much total debt do you currently have? Does your income cover all financial commitments without any hardship? Lenders also look at the amount of debt you have which can include credit cards, student loans and car payments. Reducing this debt as much as possible will show that you are financially responsible.
Credit score - Have you ever had any missed payments? Do you pay all your bills all time? To a large extent, your credit score will determine your eligibility for a mortgage as lenders use this number to predict your ability to repay the loan.
Even before meeting with a lender, you need to take an honest look at your financial health and gauge whether you are financially able to take on a mortgage. Being able to prove that your income is stable is a huge plus as lenders need to be reassured that they are not lending funds to a risky borrower.
Qualifying for a mortgage is rarely a straightforward process. With decades of experience in the housing development market, Aveling Homes is dedicated to providing the support you need.
Learn more about our services by visiting http://avelinghomes.com.au.
Aveling Homes Contact information
24/7 Metro Sales: (08) 6144 1000
24/7 Sth West Sales: 6144 1001
South West: southwest(at)avelinghomes.com.au