Avoid a disaster – get pre-approved

I am on the lookout for a couple of investment properties currently – I reckon that in a few months some good opportunities will appear in the market.

In preparing myself to buy properties, I have arranged pre-approval with a bank.  And I advise all my clients to arrange preapproval too.

Getting your finance pre-approved gives you confidence that you can borrow $x.

A pre-approval normally lasts 90 days and in the current market, having a pre-approval is important if you are looking to purchase a property.  Here are some examples of the clients with whom I am currently arranging pre-approval:

A single male professional.  The type of property he wants to buy is at the limit of his borrowing capacity (though he has an exemplary credit history).  I want him to have confidence on how much he can spend when he bids at auction.

A young couple who work in the For Purpose sector.  Their salary packages are unusual as charity employees can receive part of their salary tax free.  However, some banks are more generous than others in how they assess tax free components for NFP employees.  I want them to be sure the right bank will lend them the right amount.

A mature-aged couple who are looking to buy their forever home.  Some banks are more cautious with older applicants and want to understand how someone will repay (potentially) a 30-year loan once they are retired.  Choosing the right bank is key before the put an offer in.

Not all banks are the same.  You may decide to submit a loan application to XYZ bank because its cheapest, but then discover that it will not lend to

• People of job probation
• Lifestyle farms
• Small units
• Casual employees

If the above applies to you and you have not arranged pre-approval, you may be in strife.  Message me to discuss how to arrange a pre-approval for you.

For a chat about your finance, please feel free to contact Graeme on 02 9922 5055