No doubt about it, looking for a property is an exciting time. Deciding on the location, size, number of rooms and local amenities can however, see house hunters get carried away. If you delay sorting out your finance beforehand, it can weaken your negotiating position on both the property and your loan.
It’s important to check off the essentials first. It may seem boring in comparison to perusing sales listings, but gaining pre-approval will give you confidence with how much you can borrow.
Firstly, you need to determine if you’re eligible to borrow money and your ability to repay the loan needs to be assessed. You don’t want to find out when it’s too late that your credit history or deposit is not up to scratch.
Pre-arranging your finance puts you in a good position when it comes time to making an offer. You can present to the seller and agent as being serious and reliable. It shows you mean business. Don’t be afraid to tell the selling agent you have conditional loan approval in place.
If you do secure the purchase of a home without having your loan pre-approved, there are a few pitfalls that you could run into. For instance, you may run the risk of forfeiting your initial 10 per cent non-refundable deposit needed to put down to secure the property. Leaving an application to the last minute can also put pressure on trying to find the right loan and gathering all the necessary paperwork. It can also delay settlement.
To avoid the last minute rush, arrange for a pre-approval so you can shop around with peace of mind. Call our office on 03 9020 1420 or call Danielle Ridley direct on 0425 726 419.[/fusion_text]