Pre-approval – Get it Sorted!

Pre-approval – Get it Sorted!

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pre-approval

It’s easy to get carried away with the fun part of buying a property – looking at houses, imagining where your stuff is going to go, what parts of the house you are going to renovate – but delaying the less compelling task of arranging finance and getting pre-approval will weaken your negotiating position on both the property and the loan.

 

house for sale pre-approvalLooking for a property to purchase is an exciting time. Choices regarding location, size, features, number of rooms and local amenities often see house hunters carried away in a deluge of daydreams and anticipation.

But, before you get carried away, it’s important to check off the essentials first. Although organising your finances may seem drab in comparison to perusing sales listings – gaining pre-approval with a lender will give you confidence about how much you can afford to borrow.

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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 what to find out after you’ve made an offer that your credit history or deposit is not up to scratch.

Arranging finance before finding the perfect property will put you in a good position when it comes time to make an offer. When you do find the house you want to make an offer on, you can present to the seller and estate agent as a prepared applicant who is serious and reliable. It shows you mean business, and gives the seller peace of mind that your financing will not fall through.

Sellers are most interested in completing their sale fuss-free and with steadfast funding, and showing that you are capable of both will help put you at the top of a potentially competitive list of applicants.

avoid-pitfallsIn the instance that you find and secure a purchase of a home without having your loan pre-approved by a lender, there are a few pitfalls that you risk running into. If you don’t have financing to pay for your property, you run the risk of forfeiting your initial 10 per cent non-refundable deposit you need 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.

Saving home loan applications to the last minute also leaves less time to find the most suitable loan and have it approved ahead of settlement.  Arranging financing as an afterthought also adds immense pressure to the process of shopping around for the right loan and gathering the paperwork to prove you can service the loan, you really don’t want to rush this process!

So get onto it!

Have a chat with Chris now re your finance pre-approval on 0434 449 455. See what is available and get yourself in a favourable position come purchase time!

Fur further information on everything pre-approval contact us on info@bluewaveproperty.com.au

Do You Suffer From BANK Pain?

Do You Suffer From BANK Pain?

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Bank pain, we’ve all had it at one stage of our financial life – but what have we done about it? Some people complain about it at their local branch and maybe get a fee refunded or waived every now and then. Some people just like complaining about it to their friends or family but few will get up and do something about it.

When was the last time your bank called you to let you know about a great offer they currently have on home loan rates? Or even new savings account or term deposit that has a better interest rate than your current one? Never, that’s when! They don’t, why would they? It’s simply because they hope that you fall in to the group of “set and forget” so they can kick back and make as much money off you as possible.

BAnk

Welcome the Mortgage Broker, your number 1 friend in helping you to not only make sure that you have the best home loan solution now but also well into the future. Showing you how you can own your home sooner than 30 years, doing regular reviews of your home loan to make sure that you are getting the best rate available at the time. Then if you want to begin to create real wealth, showing you how to purchase  your own investment property and eventually an entire property investment portfolio.

Why a Mortgage Broker you ask? “I have been with my bank for years and never had an issue”….that’s great but when have they gone out of their way to help you reduce your debt? Earn more interest on your savings? As a Mortgage Broker we work for you, for what’s in your best interest and always going out of our way to show you how you can better manage and reduce your debt.

bank

A simple review on your home loan can save you thousands, let’s take an average mortgage of $500,000 that has been with the same bank for the last 5 years. If you have not revised your fixed term loan, at today’s current rates of around 4% you could potential save $37,000 in interest over the life of your loan. That would be a great family holiday! or a new car? or even a deposit towards your first investment property. Keeping in mind that is only with one review, we at Blue Wave Property like to do a review on our client’s loans every 2 years or so and this can lead to a lot more than the $37,000 saved in interest.

I aim to show all my clients how best to manage their debt, save them money in all areas possible and one day show them how to build their property portfolio, if this sounds like a good idea to you – give me a call and we can discuss your financial future. It costs you nothing for an informal chat that could lead to saving you thousands of dollars in the future!

Look forward to catching up soon – Nikki

To read a bit more about Nikki see HERE