For a 2017 first time home buyer, a much bigger household income will be needed. Challenging economic conditions are not only making it harder for people to keep up with daily financial demands, but they are making it much harder for prospective home buyers too.
What you need to know about 2017 first time home buyer credit:
- When you’re thinking of buying your first house, keep in mind that it’s important to know your credit status.
- Working towards a good credit status is important. If you have a good credit record, you are considered to be a positive risk. You may even qualify for a lower credit rate as a result. Banks and other lending institutions decide on which interest rate to give you based on your credit score.
- If you don’t have a credit history, you should work on establishing credit. When doing this, keep in mind that a credit card has a strong influence on your credit. If you do get a credit card, be diligent about making repayments. Lenders want to see that you are able to keep up with repayments consistently without defaulting.
- You are by law, entitled to a free credit report once annually. Make sure that you get this report before applying for a home loan. If there are any errors on the report, get them corrected before applying.
- When you start planning to buy a house, it’s important to get your financial affairs in order early. Work on establishing or improving your credit at least a year before you apply for a home loan.
- 2017 first time home buyer credit needs to be excellent, due to stricter lending criteria set by banks. In addition to a significant down payment, banks are looking for good credit records.
Here is a home loan calculator to assist with working out the repayment rate.