With the property market only getting more competitive, it is more important than ever for home buyers to be ahead of the crowd in order to purchase the property they want.
Due to interest rates hitting a record 53 year low and recent changes to self-managed super funds, it seems that many property investors or home buyers who were sitting on the sidelines have now swarmed in, leaving many first home buyers out in the cold.
According to the RBA, housing finance has risen by 6.5% from July 2013 - July 2014, compared to 4.6% in July 2013. As most investors know, you need to be prepared in order to successfully purchase the property you want over other potential buyers.
Part of being prepared is having your finances organised. A first stop might be to do some online calculations. Try our qualify calculator to see how much you can borrow. It will show you the maximum loan amount you would be able to borrow, based on the basic information you provide. This is more like a guide as none of the information has been verified and the full scenario hasn’t gone through the assessment process. Without a full assessment you shouldn't go out and make offers on properties or bid at auction. It is perfect to do while you are researching, continuing to save and house hunting.
Once you are getting closer to actually buying, the next step would be to lock in a formal pre-approval. This will mean that a lot of the groundwork is done before you have found the property to purchase. The lender will actually fully assess your application and run a credit check. You will be issued with a formal pre-approval letter which gives you confidence to go house hunting, make an offer or participate in an auction, knowing you are conditionally pre-approved for a home loan. Having already started the process you will be in a good position to snap up a bargain quickly and proceed to full approval for your loan, and exchange contracts before others in the market can do so.
Many buyers have made the mistake of making an offer on a property without obtaining a pre-approval first. Having to start the process from scratch uses up valuable time which may allow other buyers to outbid your offer.
So how can you obtain a formal pre-approval? Check your numbers with our qualify calculator and then proceed to Apply Online. Here you will provide all your details along with documents to evidence your income and deposit. You can also give our lending specialists a call on 13 72 62 and they can go through the options with you to find the best solution.
The property market is becoming extremely competitive amongst investors, so if you are looking to purchase soon, be as prepared as you can be to give yourself the best chance of success.