The Homeownership Goal!
Homeownership is a goal we should all strive for. It is a goal that is worth working towards. This goal should be more than just a dream – something you wish would happen. However, sometimes we forget (or overlook) the factors of what it takes to purchase a home. With any goal in life, you need to assess all the factors that lie ahead of you and the truth is the ancient proverb: “The plans of the diligent surely lead to success.”
We have highlighted two important factors that will help you succeed in the goal of homeownership.
Disposable Income
Personal debt wont necessarily stop you from getting a mortgage altogether, but it will affect the amount a lender is willing to loan. To make sure you can qualify for a mortgage, lenders will conduct an affordability assessment to determine what is your disposable income. If you have monthly debt repayments, this will reduce your disposable income resulting in a lower mortgage loan.
Should you be in a position to pay off as much debt as possible through possible bonuses, salary increases and reduced household spending – this will assist in increasing your disposable income. It would also be a good idea to cancel any unused credit cards, store cards, etc. as lenders look at the amount of credit available to you and not just the amount you owe.
Credit Risk
Whether you can clear your debts or not, make sure you don’t miss ANY payments or make a late payment as this will influence your credit scoring at the Bureaus. Handed over accounts would need to be settled and arrears brought up to date. Shopping for credit, increases the number of credit enquiries on your credit report which impacts your credit score. Taking out more credit will not necessarily increase your credit score (many lenders may advise you otherwise). It is about managing your existing debt responsibly and ensuring repayments are made on time.
A low credit score does not always equate to a decline. At Chartwell, we consider an application on its merits: Do you have sufficient disposable income; What have you done and currently doing to maintain a good credit record and manage your finances responsibly.
Make your goals count. The past is a closed door, the present is an open one, and the future is an approaching one. Are you ready to step up onto the homeownership ladder? Visit our website and choose from the selected developments which property you may be interested in. Our sales representatives will gladly guide your through the homeownership journey.
