Many people and investors want to take the first step toward homeownership, but don’t have the 20% deposit that most banks require. However, these people are not out of luck. With the purchase of lenders mortgage insurance (LMI) and after meeting certain conditions, many would-be homeowners can purchase their home with as little as 5% down.
Applying for a loan requires a great deal of paperwork. Having all of your documents with you at the time you apply will make the process go much more smoothly and much less stressfully for everyone.
Be sure to bring all of the following documents (as they apply to your situation) when you apply for the loan:
Be sure to have statements for all of your financial liabilities, as non-disclosure of a liability can lead to your loan not being approved.
Today, many people and agents are choosing to buy properties at auction instead of the traditional home-buying process. While purchasing your home from an auction can be exciting, it’s important to keep a few things in mind.
1. Be fully prepared to purchase the property before you start bidding. If you are the winning bidder at an auction, there is no turning back.
2. Have your finances in order before attending the auction. Your financing should be approved well in advance. Do not leave it to the last minute; this process takes time.
3. Make sure to do the property inspection and get all appropriate building reports as you prepare to buy from an auction.