Browse Forums Home Finance 1 May 02, 2011 11:28 pm hi i have decided to purchase my first home and very excited after renting etc for years. i have moved from melboune to regional victoia on the hope of doing this . i am looking at land of approx 75 k and build of $130, problems are i have not picked up and fulle time permanent job as yet in my field. i am worki g though and earn around $800 per week sometimes more. i have only started saving and have saved $4k in two months andplan to save $2k each month for the next six monhth. i have a ctedit card debt of 8k and store card of 4.5 which i am paying both them off at also 1000 per monTh to try clear them. if i refeive a tax rebate this will also help. i have a few missed patmentz on my card but for reasons out my control and spoke with the bank staright away and they were fine witn it and said it would not be noted on my credit file. i also worried that i have not been in my rntal for six months as it is a month to month lease. i do undetstand i need permanane employment. my average income wi.l be around 50 k and 8k family tax benefit. i also plan to have a 2nd job at 10k per year. i have 2 kids. i want build so will be looking as it stands at the momenr 26 k fhg and my deposit at the tme hopefully around 12k or more. what are my chances, can any oneadvive ! thakz home loan and how to get one 2May 03, 2011 7:29 am First thing first. You need a job. Simple as that. Be in it for at least 6mths - longer if possible. Use that time to save as much deposit and get rid of the loan / credit card. Do a credit check on yourself (http://www.mycreditfile.com.au is one place you can order one) to make sure there are no nasty surprises. You will more then likely need 5% min deposit saved over at least 6mths. Things like grants / tax refunds are not always classified as genuine savings. Family payts - Depending on the age of your children they may be able to include it in your income. A good starting point is to sit down with a bank or broker and see exactly what you would be able to borrow on your income. This may be your biggest stumbling block. Some things are worth waiting for. Re: home loan and how to get one 3May 12, 2011 9:12 am The question is how are you earning money if you aren't working at the moment? Is it that you have a casual job? FTB wouldn't add up to $800 / week! Just to let you know lenders only use FTB A & B, they don't use the other portions if you receive any. Most lenders also have an age rule where they only use the income if the children are under 11 yrs old, although this age cap varies between lenders. Re: home loan and how to get one 4May 15, 2011 12:31 pm Hi vsters, Couple of points: 1. Your income can be acceptable to a lender in a variety of ways. - Full time employment - usually 6 months minimum. Sometimes 3 months will be acceptable however you will need to demonstrate that you have worked in the same industry for at least 2 years. Written confirmation from your employer that you have successfully completed any probationary period will also be a given. - Permanent part time - generally 12 months employment with same employer will suffice however, some lenders may require the 2 year in same industry rule as above in addition to your 12 month tenure. - Casual - some lenders will accept 12 months employment as per part time but some will require a minimum of 2 years. - Temp - If you can evidence consistency of employment over 2 years (by providing tax returns) this is also acceptable and you will be assessed on the same basis as self employed people. 2. Genuine savings: - The rules differ from lender to lender. Some will accept genuine savings over 3 month period where as others is 6 months. By genuine savings they mean funds you have set aside from your salary each pay. Gifts from family, sale of assets (boat etc) and unexplainable lump sum deposits are generally not viewed as acceptable. 3. Credit cards/store cards: - You have mentioned that you are paying off the credit and store card at the same time as saving. This is an excellent approach and demonstrates significant level of discipline on your part. Another approach you could consider is to use the savings you have accumulated so far ($4K) to clear and close that store card and put all of your efforts into clearing and closing your credit card before starting your saving once more. The reason for this is that you are currently paying quite high levels of interest on these cards and the longer you leave them the more interest you pay. By clearing these debts up front, according to your figures, you can then save $3k per month and ALL of these funds are staying in your pocket. - Credit and store cards are also a hinderance when applying for a home loan. These are viewed as ongoing commitments whether you use them or not. As a rule a lender will apply a monthly commitment of 3% of the total card limits meaning if you have a $10K credit card limit, the lender will use a nominal figure of $300 per month. This can significantly affect your borrowing capacity thus you are better off going into your home purchase with a clean slate. I hope you find this useful and good luck with your goal. Paul The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19096 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35319 In Qld it is a requirement that a builder must have a cost breakdown, for building a home to the same specification, with the same inclusions and the same finish. So ask… 1 1801 |