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7 Keys to Unlock Your Dream Home

By Ann Prinsloo

Dreaming of purchasing your dream home in 2024? This year, ditch the resolutions that wilt faster than a paper daisy and grab the keys to real estate victory with these 7 battle-tested tactics!

Goal #1 – Clearly define your objective

The initial step toward achieving a goal is to outline it specifically. Record precisely what you aim to accomplish, such as “acquire a 1-bedroom unit near Takanini by December 31, 2024” or “invest in a property in Karaka by the end of August 2023.” Establishing a timeframe adds urgency, keeping you motivated and focused.

Goal #2 – Budget Bootcamp

Developing sound saving habits is crucial when planning to secure a home loan. Set a monthly savings target by analyzing your expenditures, including essential costs like rent, food, bills, and transport. Once you have a clear view of expenses, identify areas for potential cutbacks and determine the portion of your income available for savings. A higher savings balance makes you more attractive to lenders.

Goal #3 – Master Job Stability

A consistent employment history and income are pivotal factors for lenders assessing a home loan application. While a career change can be positive, transitioning to a new industry may raise concerns for lenders. Ideally, maintain a steady employment history for at least two years to help lenders predict your future income. If changing jobs, inform your lender and provide necessary documentation.

Goal #4 – Debt Demolition

Many lenders require a zero balance on credit cards for home loan qualification. Lenders assess your debt-to-income ratio, comparing earnings against expenditures to prevent overextension. Avoid major purchases like a new car or expensive holiday while saving for a property, as lenders re-check credit before finalizing loans.

Goal #5 – Credit Score: Your Superpower

Lenders rely on your credit history to assess risk, determine lending amounts, offer interest rates, or approve loans. Obtain a credit report to understand your financial history and address any issues before meeting with a lender. Improving your credit score enhances your borrowing prospects.

Goal #6 – Pre-Approval; Your Golden Ticket

Understanding the amount a lender will approve is crucial. Lack of pre-approval might lead to missed opportunities. Pre-approval provides an approved loan amount, allowing you to confidently set a price range and make offers on properties without last-minute panic.

Goal #7 – Market Mastermind

Invest time in researching the target area to understand property types, price ranges, and market dynamics. This knowledge helps you identify suitable properties quickly, assess their value, and determine the urgency of your purchase.

Remember, owning a home isn’t just about bricks and mortar – it’s about building your future. With these goals as your guide and a little hard work, you’ll be popping champagne in your own dream home before you know it! Happy house hunting!

DISCLAIMER: The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. Ray White will not accept responsibility or liability for any reliance on this information, including but not limited to, the accuracy, currency or completeness of any information or links.
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