Guide to Buying your First Home

13 SAVING A DEPOSIT likely support you if you have proven savings equivalent to 5% of the purchase price. I stated that the bank will most likely support you because there are several factors the bank will take into consideration when you apply for your loan. Your ability to save is one of them but they will also look at your employment history to establish how stable your employment record has been, being self-employed can sometimes make it difficult to get your loan approved, but not impossible. If your business is well established and showing profits you will be OK. If you are currently renting, they will want proof that you have been paying your rent on time and that you have no bad credit history. Make sure you pay all your bills on time. In actual fact most new home buyers today do it with 5% deposit because there are government assistance programs that will push up the amount of deposit you have available when it comes to settlement day. We will discuss this further shortly. In addition to this you will have time to save more money prior to final payment. Again we will discuss this further later in the book.