Prep Work for First Home Buyers

Prep(aration) work is never much fun – ask anyone who has had to sand down their house. Still, it always pays off. Do the prep work now and you'll save time and hassle when it comes to processing your home loan.

It's not too painful really. All you need to do is:

• Start thinking about your money coming in and going out,
• Form a savings history (some is better than none at all!),
• Wipe as many debts as you can, including student loans loan (existing debt reduces the amount you can borrow), and
• Grab the relevant information your mortgage provider requires before you apply:

1. Proof of annual income - a payslip, or, if you work for yourself, a profit and loss statement.
2. Details of your debts and expenses - including any loans, credit cards, hire purchases and child support as well as an idea of household expenses.
3. Your sale and purchase agreement - if you have a valuation or any other report on a property would be handy too.
4. Evidence of your deposit - such as a bank statement.
5. Two types of identification - a driver's licence and credit cards (ideally with a photo) are good.

Source: www.iwantahome.co.nz

Posted: 1 Apr 2008

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