August 29, 2017
With the weather starting to heat up for Spring & the plants beginning to bloom, it’s now a great time to get outdoors to enjoy the sunshine & also one of the best times of the year to buy a property.
But as the competition heats up how can buyers stand out from the crowd and obtain the best property for the right price? Get our tips below and be that savvy buyer.
Know your borrowing power before you start looking
As today’s lending environment is very tight it’s best to avoid overstretching yourself. That’s where a Mortgage Broker can help. They can assess your needs & will be able to calculate the loan amounts you can borrow from an extensive panel of lenders.
When assessing your borrowing capacity, a lender will not use the current interest rates that are on offer. The lender will have an assessed rate, which is usually 2-3% higher than their advertised loan rates. This gives you some comfort in knowing that should rates rise in the near future, you should be able to maintain your payments & your lifestyle. It’s important to note that each lender’s loan policies vary, meaning they all calculate the amount of money they lend differently.
Your Mortgage Broker may be able to pre-approve your finance, which is generally valid for 3 months or give you an eligibility certificate to give you that edge when you’re ready to put in that offer. They can also determine eligibility for first home buyers and the first home owners grant (FHOG).
Do research before you find a property
While you’ll have some ideas about what you’re looking for, it’s important to research a large selection of suburbs around your ideal location as you may be surprised by what you find. If after speaking with your broker you find that your dream suburb is out of your reach, then opt for or consider buying in a less developed or popular area to get a foothold in the market.
If you start by working hard to reduce your loan, together with capital growth, you can build equity in your first home, creating an opportunity for you to move into your ideal suburb down the track.
Speak to real estate agents, do digital research & visit the area or street you are interested in at different times of the day. Speak to local residents & talk to councils about developments in the area that may influence the capital growth of a property. Your Mortgage Choice broker can also get you FREE property reports. Attend inspections or auctions before you are ready to buy, so that you are confident & prepared when you make the offer or bid!
When making an offer, the real estate agent will need to know how long you will need to obtain finance and what will be the anticipated settlement date. As a general rule, the average time for obtaining finance is 21-28 days with the settlement date 21-28 days after finance approval is granted. Settlement date is usually a date mutually agreeable between the purchaser & seller.
To find out more about how much you can borrow, contact Steve Sims today on 0433 124 081.