We’re often told that the little things in life are not worth fretting about, that it’s all about the big stuff: buy a car, get a degree, get a house, get married. However, the truth is, there are actually a number of very little, very important things we need to do to see any one of these big things achieved.
Take staying married, for example: If you sweat the small things of dressing nice, smelling nice, remembering anniversaries, listening, giving flowers, saying you’re sorry (often) … then you are more than likely to achieve the big thing of staying married.
Getting a home loan is a massive life step, and, it too, is achieved by sweating the small stuff. Here’s why: Banks are looking closer than ever at your account conduct. For example, not paying cell phone bills on time or not making minimum payments on your credit card bill, all seem pretty minor, but can leave little warning signals to your prospective lender.
When considering your application, lenders will do a personal credit check. This will show how many people have been enquiring into your credit history, see the number of defaults (if any), and any payment delinquencies. From this information the bank will paint a picture of your financial profile and the risk that you represent for 1) them as a lender, and 2) yourself as a borrower.
So, is the small stuff important? You bet! Paying bills on time is increasingly significant and will take you one step closer to achieving the big stuff, in this case purchasing a property.
Lance Shearman is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.