How long does it take to find and secure your dream home?
It takes most first home buyers longer than a full working week to house hunt and apply for finance for their ‘dream’ property, according to new research.
The 2020 St George Home Buying Survey found that it takes first-home buyers an average of 44 hours to research properties, hone in on one they like, and begin the home-buying process – including applying for a mortgage.
Why does it take that long?
Eight in ten people surveyed said they found the application process for a home loan time consuming and inconvenient.
What are they finding difficult about it? Well, more than half said they were ‘pained’ by the overall amount of information they need to process.
The other main hurdles facing home buyers included:
– Understanding what was involved (73% of people surveyed)
– Learning about the housing market (71%)
– Working out their financials (64%).
So what information is required?
Yes it’s true – the banks ask for a lot more information these days which we understand can feel a little daunting. Since the royal commission, the banks are increasingly focused on whether an applicant can service a home loan.
Be prepared to have your living expenses scrutinized and any large or regular expenditure needs to be addressed. The bank will ask for 3-6 months worth of transactions on any accounts you hold. So if you run multiple accounts you’ll need to provide statements for all of the accounts.
A lot of lenders also need to see statements for any existing liabilities – so things like your existing home or investment loan, personal loan, car loan and don’t forget your credit cards too. This is so they can check your repayment history.
And of course, there is the usual income documentation – payslips, PAYG Summary (or Income Statement from Mygov) and tax returns and company financials if you’re self employed.
How we can help cut down that time
Our best advice is don’t try and go it alone. We go through this on a daily basis so we can help make the process a whole lot less time consuming, confusing and inconvenient for you using our expertise and some nifty software to cut down the time!
We can help you understand what’s involved and help you work out your financial hurdles.
We also firmly believe in educating our clients so they are empowered to make the right financial decision. Please get in touch with us today so we can help you navigate through the housing market and home buying process.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.