People normally purchase house on the occurrence of a life event, which include getting married, having a kid, kids growing up needing more space, or getting old and wanting to get a smaller maintainable house etc. Looking for a new home can be an exciting and challenging experience. After all, buying a home is one of the largest investment one would make in the lifetime.
It is important before you actually go out and hunt for that perfect house, you make an appointment to see a mortgage broker to compute a realistic figure in which you can borrow, and then based on the amount of saving you have, you can then work out a price range for the house in which you can afford.
It is important to shop around and explore your options so you can find the best deals out there. However, getting a home loan is not about getting a product, it is actually about delivering a solution, a solution in which can cater you needs to settle that dream house on time. In addition, a good mortgage broker will guide and support you along the way toward the settlement, to the extent, a good broker can help you to liaise between the real estate agent, the conveyancer and the bank, and be an intermediary hence you do not have to worry about the settlement process, as your primary job is the find the house, and prepare the deposit to settle that house.
The importance of pre-approval
EndureGo Finance is a licensed ASIC approved mortgage broker and we are located in Ashfield Sydney and Adelaide South Australia, it is our mission to ensure that you can settle on time. Our first consultation with you is about finding out your needs, your current situation including income status, employment status, and saving situation, then we will work out a workable solution to meet your needs, and assist you to deliver that solution in the form to assist you to settle the dream house on time. Part of the process is about getting a pre-approval prior to you busily hunting for that dream house, as it will save your time, by narrowing down a realistic range of house price in which you can afford. The benefits of doing a pre-approval is as follows:
- Is Free.
- Is valid up to 3 months.
- It gives you clear guidance on how much money you can spend.
- You won’t be setting up for disappointment if you think you think you can spend more than your lender is willing to lend to you.
- It allows you to shop with confidence and bid at auction should your dream home come onto the market.
- It shows your real estate agent that you are serious about buying a house. Some agents won’t spend their time showing you homes in case you don’t come through with financing.
Pre-approval is important, as it provides an estimate about how much you can borrow, but it is subject to the following conditions:
- Reliability and accuracy of the information provided
- Valuation of the property once identified
- Up to date employment check once the property is found
- Acceptable evidence of the deposit to be used to settle the house
Also it is important to note that pre-approval is subject to any policy changes from the lenders, as pre-approval is an approval subject to various conditions, and if the lending policies changed, then the pre-approval might also need to be adjusted to meet the changes.
Once you have found your dream home, you will then need formal approval. Full approval of your loan can take as little as an hour or can take as long as a few days depending the employment check, valuation of the property and verification of the deposit uses to settle the house.
If your pre-approval is rejected, it is important to find out why before going to the next broker to get the finance, as too many credit inquiries can also jeopardise your chance of getting the pre-approval.
The various reasons in which a pre-approval can get rejected including:
- Your employment situation is not acceptable to the bank for example casual of less than half a year.
- You are on probation, and the lender you applied to does not take probation.
- Too many credit inquiries. All your loan applications will appear on your credit report. If there are too many this will make your lender nervous as they do not know the reasons as why you are going to that many lenders to obtain the loan.
- The interest rate has increased, leading to reduction of the maximum loan amount.
So remember when deciding to take that leap of faith along with many other fellow Australians who are on the property ladder, just remember to be prepared.
Whether you are looking to buy your first house, move home, refinance or invest in property, EndureGo Finance, the licensed mortgage broker in Ashfield Sydney and Adelaide South Australia can help you. We are accredited with over 30 lenders, and have accessed to over 500 credit products. Most importantly we will hold your hands, give you ample of support and guidance to help you to settle on time. Plus there is no charge for this service. Please give us a call on 0410-829-900 and speak to John, hence he will guide you to take that first step.