What comes first the property or the Home Loan
It’s easy to be carried away with the fun part of getting a home loan and buying a property:
But, delaying the less compelling task of arranging your finance will weaken your negotiating position on both the property and the loan:
This is the last thing you want to have happen to you.
For most of us…
Looking for a property to purchase, whether it’s in Nerang , Southport or Coolangatta, is an exciting time.
Choices regarding location, size, number of rooms and local amenities often see house hunters get carried away in a deluge of daydreams and anticipation.
But, before your excitement becomes too much…
It’s important to check off the essentials first:
Although organising your finances may seem drab in comparison to investigating sales listings…
Gaining pre-approval with a lender will give you the necessary confidence about how much you can afford to borrow.
First and foremost:
You need to determine if you’re eligible to borrow money from a lender.
Your ability to repay the loan will need to be assessed, you don’t want to find out after you’ve made an offer that…
- You can’t afford the loan repayments
- Your deposit it not enough
- Your credit history is not up to scratch.
Arranging finance before finding the perfect Gold Coast property will put you in a good position when it comes time to make an offer.
When you do find the house you have always wanted…
You can stand before the seller and real estate agent as a fully prepared buyer who is serious and reliable.
Using a Mortgage Broker before you start home loan negotiations…
Shows you mean business, and gives the seller peace of mind that your financing will not fall through.
And don’t be afraid to let the selling agent know you have conditional loan approval in place.
A seller is really interested in completing their sale without any fuss.
With secured funding in place:
You send a message that you are a capable purchaser who should be taken seriously.
This will propel you to the top of a potentially competitive list of applicants.
On the other hand:
If you find and secure the purchase of a home without having your loan pre-approved by a lender…
You run the risk of forfeiting your initial 10 per cent non-refundable deposit that you needed to put down to secure the property.
This may differ depending on what state you live in, but the point is…
It always pays to be organised and have pre-approval in place so you don’t get caught out.
Using a Mortgage Calculator allows you to prepare well before your home loan application is sent in.
On the other hand, if you leave it to the last minute…
Well, you’ll have less time to find the most suitable loan and have it approved ahead of settlement.
Arranging home loan financing as an afterthought…
Just adds immense pressure to the whole process of shopping around for the right loan and gathering the paperwork to prove you can service the loan.
You don’t want to rush this process:
The really smart move to find your new Gold Coast home is…
Speak to an accredited, qualified finance broker who will sort out all the steps you’ll have to go through.
For over 25+ years, I was involved with banks’ lending money to people who wanted to purchase their home.
Now, as a professional finance broker located in Nerang and servicing all clients on the Gold Coast, I’m ready to help remove all the worry that goes with obtaining a home loan.
Give me a call on…
0408 761 847
And I’ll set up a time to explain how it all works.
Look forward to hearing from you.