We know that a lot of people in Fairfield will be shopping for a new home in the New Year, however before you start going to open homes and making offers, it’s a good idea to get your finances in order.
For most people the first step in figuring out where they stand financially is to have a chat to a financial lender and gain conditional approval, also called preapproval.
This is a set loan amount that your lender provides you with based on the information you provide, and subject to certain conditions such as a valuation and building and pest inspections.
You don’t need to get preapproval before making an offer on a property, however it is recommended and it can help you get a clearer understanding of what you’re capable of borrowing. It can also bring any potential financial issues to your attention so you can deal with them before you’re in the process of buying.
Even if you aren’t ready to start making offers yet, it’s well worth finding out what you could potentially borrow and use this as a basis to start researching the property market and figuring out how much you need to save until you can afford the types of properties you’re interested in.
Having preapproval can help take the stress out of property negotiations and give a prospective buyer a solid price range they can work within when they start making offers. Plus, once you make a successful offer, the lender will already have all of your personal information such as employment, income, assets and liabilities, so they will be able to fast track your loan application so you don’t miss out on securing a property.
It should be noted however that a pre-approved loan is usually only valid for up to 90 days, and while it can be a good predictor of how much you can borrow it should still be used as guide only. There is no guarantee that a lender will provide you with a loan until all details about the property and your situation are known.
Overall, preapproval is definitely worth having and it can help you move quickly if you come across a property that you fall in love with – which could be the difference in whether or not you secure it!
If you would like to discuss your borrowing requirements then the team of brokers at Professionals Finance can help you. Visit www.professionalsfinance.com.au to find out more.
For those who are ready to buy, feel free to browse our properties for sale at professionalsfairfield.com.au.