Home Loan Deposit Budgeting 101

You hear it all the time. Owning your own home is becoming something for the haves not the have nots. Real Estate is being priced out of the common person’s hands. You know this is just not true! Bunbury Real Estate are dedicated to helping each and every one of you achieve your real estate goals.

Yes, the value of real estate has increased. Yes, there was a big bubble that seems to have settled. Yes, property values are realigning themselves. They do this all the time. This is why real estate is such a great place to put your money. It has proved to be better than any bank time after time. In the meantime, our wages have also increased.

The bottom line to any large purchase such as owning your own home is you need to create a budget and stick to it. THIS HAS NOT CHANGED for decades now. The question is – do you possess the intestinal fortitude to stick to your budget and keep your eyes on the prize at the end? If you are then check out our tips to help you get to your goal even faster.

What Do the Banks Want to See?

Obviously, the banks will want to see that you are able to cover the debt you intend to incur when buying your dream home. One of the best ways to do this is to show a record of steady savings for your deposit.

It is important to keep working on squirreling away a little bit of cash each week to build up that initial deposit and show you are a good risk. Take the time to sit down and create a workable budget that includes all your essential spending.

From here you are able to determine if you need to temporarily cut out any non-essential spending such as entertainment, holidays, and treats. By treats we mean getting that weekly manicure, buying gourmet food or those shoes you saw last week.

If you can show your lending institution you are serious then they will take you seriously. By this we mean that people who wish to enter the real estate market and have done their homework generally place themselves in a much better position than those who don’t.

The banks are keen to give loans, but they are not keen to just give their money away. It is wise to show that you have a proven history of being able to create savings as well as pay off debt.